Transcript Exception Administrator (EA)

Commerce Bancshares, Inc.
Investor Presentation
New York
January 26 – 28, 2009
Bayard Clark, EVP & CFO
Jeffrey Aberdeen, Controller
Nicole Hileman, Mgr – M&A
Commerce Bancshares, Inc.
Cautionary Statement
A number of statements we will be making in our presentation and in the
accompanying slides are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, such as statements of the
Corporation’s plans, goals, objectives, expectations, projections, estimates and
intentions. These forward-looking statements involve significant risks and
uncertainties and are subject to change based on various factors (some of which are
beyond the Corporation’s control). Factors that could cause the Corporation’s actual
results to differ materially from such forward-looking statements made herein or by
management of the Corporation are set forth in the Corporation’s Third Quarter Report
on Form 10-Q and the Corporation’s Current Reports on Form 8-K.
Commerce Bancshares, Inc.
NY2
About Commerce Bancshares
Lower Midwest Footprint
•$18
billion in assets – 5,217 FTEs
•Super-Community
•86%
Bank – over 360 banking locations
of 2008 profits from five key markets
•Denver
and Tulsa markets added in 2007
•Adjacent
metropolitan markets
Des Moines
Omaha
Denver
Kansas City
Wichita
St. Louis & Kansas City
Deposit Market Share
US Bancorp
BoA
Commerce
Others
2008
13%
12%
8%
67%
Source: FDIC 2008 Deposit Data
Tulsa
Oklahoma City
Peoria
Cincinnati
Indianapolis
St. Louis
Louisville
Springfld
Nashville
Performance – CAGR
2008
10yr
(8%)
6%
Cash Div
5%
11%
Stk Price
3%
5%
Total Rtn
5%
7%
EPS
Commerce Bancshares, Inc.
NY3
We compete with a….
Super-Community Bank Platform
 A More Nimble Format . . . With Higher Service Focus
Community Bank Front End
Flat organization – quick decisions
• Employees embrace strong culture
• Solid multi-developed customer relationships
• Knowledge of customers and markets reduces risk
•
Super-Regional Back End
•
•
•
•
Sophisticated payment processing systems
Broad, consumer product offerings
Private banking; trust; capital markets
Competitive on unit costs
 A Strategy that Builds Results for Tomorrow
•
•
•
•
•
Sales across business lines
Heavy people development and training
Investment in discretionary technology*
Top quartile credit quality metrics
Disciplined approach to acquisitions
*Technology expense has grown at a 5yr CAGR of 6.7%.
Commerce Bancshares, Inc.
NY4
Commerce…
Our Relative Position Against
10 Top Competitors
With Branches Within 5 Miles of a Commerce Branch
Name
Commerce
US Bancorp
BoA
Regions
UMB
Nat City
Central Banc
Top 10 Total
% CBSH / Top Ten
# of
Branches
Deposits
($ in Bn)
214
183
155
83
78
75
67
1,000
21%
$12.1
$10.8
$12.8
$2.9
$3.9
$2.8
$3.8
$55.1
22%
Deposits
as a % of
Top 10 Total
Deposits /
Branch ($ MM)
22%
19%
23%
5%
7%
5%
7%
$56.4
$59.2
$82.5
$35.2
$49.8
$36.9
$56.1
While Virtually Tied for 1st in Total Deposits,
Commerce Ranks 4th Highest of Top Ten in Deposits Per Branch
Source: FDIC
Commerce Bancshares, Inc.
NY5
We provide ….
Balanced Customer Solutions
2008 Pre-tax Profit*
CUSTOMER SEGMENTS
LINES OF BUSINESS
($ in Millions)
Consumer
$125
Payment Systems
$220
Transaction accounts;
Consumer Debit;
Merchant
Lending & Risk Mgmt.
$40
Student loans; Bankcard;
Mortgage; Consumer
Lending
Treasury Svcs; Int’l;
Purchase Card
Commercial Lending;
Floor plan; Leasing
Private Client Transaction
Accounts; Corp. Debt;
Corp. Trust
3%
1%
Institutional Trust;
Capital Mkts Group
17%
29%
Trust &
Private Bkg
$37
Money Market; Mutual
Funds; Annuities;
Bonds
(3%)
49%
Commercial &
Capital Mkts
$103
Money Mgmt. / Trust
$5
Private Banking
(7%)
Private Client/
Institutional; Fixed
Income
2%
*2008 includes overhead allocations of $9 million not considered in GAAP segment reports.
Numbers in boxes reflect pre-tax contribution as % of total contribution.
9%
Commerce Bancshares, Inc.
NY6
Revenue Per Share Growth Has Improved Recently
….and has been consistent over time
Revenue Per Share (indexed)
160
140
CBSH
PEERS*
120
100
2002-2005 CAGR
Peers = 1.9%
CBSH = 6.8%
80
2005-2008 CAGR
Peers = 5.2%
CBSH = 7.5%
60
2001
RPS Growth
(YOY):
2002
2003
2004
2005
2006
2007
PEERS*
6.5%
4.6%
(3.6%)
4.7%
10.3%
6.2%
(.6%)1
CBSH
6.5%
6.3%
5.4%
8.8%
7.8%
7.2%
7.5%2
*PEERS: Associated, BOK, City National, Colonial, Cullen/Frost, FirstMerit, and Zions
1Forecast 2008 – not actual
2CBSH Actual 2008
Source: Financial Information Systems and CBI Annual Reports
2008
Commerce Bancshares, Inc.
NY7
.…’08 Report
Revenue Growth
($ in Millions)
2006
2007
2008
07 vs 08
% Change
Contribution from Loans
$216
$235
$248
5.5%
305
323
316
-2.2%
… from Investments
-8
-20
29
NM
Net Interest Income
$513
$538
$593
10.2%
115
117
110
-6.0%
… from Cards
95
104
114
9.6%
… from Trust
72
78
80
2.6%
… from Other*
80
81
102
25.9%
Non Interest Income
$362
$380
$406
6.8%
Total Revenue
$875
$918
$999
8.8%
% Fees to Total Revenue
41%
41%
41%
… from Deposits
Contribution from Dep. Fees
*Includes Securities Gains
Commerce Bancshares, Inc.
NY8
Diverse Revenue Sources
Outsized in Wealth Management and Card Revenue
Svc Chrgs
11%
Fees &
Comm
3%
Wealth Mgt
11%
Other
2%
Commerce – YTD 12/31/08
Peers*
Net Int Margin
61%
Wealth Mgt
5%
Card Inc
12%
Other 5%
Svc Chrgs 10%
Fees & Comm 7%
Net Int Margin
71%
Card Inc
3%
*Data as of 9/30/08 - Peers Include: BOKF, CYN, ZION, FMER, CFR, ASBC, and CNB
NOTE: Excludes Securities Gains
Sources: Financial Information Systems, SEC, Company Reports
Commerce Bancshares, Inc.
NY9
.…’08 Report
Pre-Tax Profit
($ in Millions)
2006
2007
2008
07 vs 08
% Variance
Total Revenue
$875
$918
$999
8.8%
26
43
109
153.5%
Salary Expense
245
265
286
7.9%
Benefit Expense
43
43
48
11.6%
Occupancy + FF&E Expense
69
70
71
1.4%
Supplies & Communications
33
34
35
2.9%
Outside Fees
87
89
95
6.7%
Other
48
74
81
9.5%
$324
$300
$274
Provision Expense
Pre-Tax Profit
(8.7%)
Commerce Bancshares, Inc.
NY10
Commerce Non-interest Expenses, relative to the Peer group, are
higher, but align with its growing fee businesses
PEERS*
Noninterest Expense as % of Avg Assets
4.00%
3.50%
CBSH
3.48%
3.27%
3.17%
3.07%
3.00%
2.94%
2.90%
2.91%
2.92%
2.96%
2004
2005
2006
2007
(51)
(64)
(77)
2.94%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
CBSH
(Disadvantage)
in bp of assets:
1999
(33)
2000
2001
2002
2003
(77)
(46)
(58)
(55)
*PEERS: Associated, BOK, City National, Colonial, Cullen/Frost, FirstMerit, and Zions
Source: Financial Information Systems and CBI Annual Reports
(62)
Sep-08
(90)
Commerce Bancshares, Inc.
NY11
Balance Sheet Trends
($ in Millions)
$12.9 billion
$13,000
$11,500
$10.9 billion
$11.6 billion
$10,000
$8,500
$8.9 billion
$7,000
$5,500
$4,000
$2,500
$3.7 billion
$3.8 billion
$1.3 billion
$1.6 billion
$1,000
billion
Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 $3.5
Jun-08
Sep-08 Dec-08
Loans
*At 12/31/08, 86% of deposits were <$100M
Deposits*
Investments
Equity
Commerce Bancshares, Inc.
NY12
Commerce…
How Have We Been Affected?
In This Economic Downturn
 Strong Demand for Loans

Customer demand for liquidity high as credit tightens.
 Strong Competition for Core Deposits

Bank demand for stable, low cost deposits, high as liquidity needs grow and capital
markets dry-up. Some irrational pricing.
 Decreased reliance on overnight and unsecured borrowings.
 Pledged additional collateral with the Fed and FHLB to double “backup” funding
facilities (approx. $4B).
 Investment portfolio ($4B) has been managed to free as many saleable bonds as
possible (approximately $1.6B).
 Suspended stock buy-back to add liquidity and capital.
Commerce Bancshares, Inc.
NY13
Commerce…
Managing with Stable & Diversified Funding
$16
$14
$2.9B
$ Billions
$12
$1.8B
$10
$8
$6
$4
$2
$0
2006 Q1&2
2006 Q3&4
Core Non-Contractual Deposits
Customer Repos
FHLB
2007 Q1&2
Retail CD's
Structured Repo
TAF
2007 Q3&4
2008 Q1&2
2008 Q3&4
Fed Funds
Capital Market's CD's
NOTE: No BHC leverage; only Common Equity; no senior, subordinated or hybrid debt.
Commerce Bancshares, Inc.
NY14
Commerce…
Managing Interest Rate Risk to a Neutral Position
Net Interest Income: 2000 – 2009(E)
($000's)
616
00
,0
5
62
00
,0
0
60
00
,0
5
57
00
,0
0
55
00
,0
5
52
00
,0
0
50
00
,0
5
47
00
,0
0
45
00
,0
5
42
592
538
499
513
502
497
502
2004-2005
2005-2006
481
468
2000-2001
2001-2002
2002-2003
Total Net Interest Income
2003-2004
Change Due to Rates
2006-2007
2007-2008
2008-2009
2009E
Change Due to Volumes
Commerce Bancshares, Inc.
NY15
Commerce…
Managing to Limit Earnings Volatility
Bank Duration of Equity (or mismatch):
2000 – 12/2009 Forecasted
5.00%
10.00%
9.00%
3.00%
8.00%
7.00%
6.00%
2.00%
5.00%
4.00%
1.00%
0.00%
3.00%
Effective Duration of Equity
Fed Funds
Grey Band = Long-Term
Duration Target Range
2.00%
1.00%
0.00%
•
Future Duration Based on
Forecasted Rates/Volumes
Ja
n0
Ju 0
l-0
Ja 0
n0
Ju 1
l-0
Ja 1
n0
Ju 2
l-0
Ja 2
n0
Ju 3
l-0
Ja 3
n0
Ju 4
l-0
Ja 4
n0
Ju 5
l-0
Ja 5
n0
Ju 6
l-0
Ja 6
n0
Ju 7
l-0
Ja 7
n0
Ju 8
l-0
Ja 8
n0
Ju 9
l-0
9
-1.00%
Fed Funds
Duration of Equity
4.00%
The duration of equity measures the sensitivity of the value of the Bank (all future cash flows) to changes in rates.
In order to protect the Bank against swings in market rates, Commerce manages the Bank’s duration of equity to within
a conservative long-term targeted range of 2.00 – 3.50%1
Management relies on “on balance sheet” solutions to manage interest rate risk.
1This
targeted range was established over time based on Management’s
comfort with levels of short and long-term net interest income risk.
Commerce Bancshares, Inc.
NY16
Commerce…
Our Loan Portfolio
is well diversified – 57% commercial; 43% consumer
($ in Millions)
% Chg
(‘06 – ‘08)
2006
2007
2008
$2,703
$3,124
$3,491
29%
Construction / Bus. RE
2,594
2,876
2,983
15%
Residential RE
1,415
1,521
1,522
8%
Consumer / HELOCs*
1,797
2,002
2,163
20%
Credit Card
595
666
777
31%
Total Loans
$9,105
$10,189 $10,936
20%
Business
Loans held for sale**
Annual average
*Includes Student Loans held to maturity
**Mainly Student Loans
$316
$322
$347
10%
Commerce Bancshares, Inc.
NY17
0.80%
0.70%
0.70%
0.60%
0.60%
0.50%
0.50%
0.40%
0.40%
0.30%
0.30%
Non-Perf. Assets/Total Loans
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
19
19
19
19
19
99
0.00%
98
0.00%
97
0.10%
96
0.10%
95
0.20%
94
0.20%
Net C/Os to Avg. Total Loans
Risk Management is
An Important Part of Our Culture….
19
Non-Performing Assets to Total Loans
Commerce…
Net CO/Avg Total Loans
Commerce Bancshares, Inc.
NY18
Asset Quality…
Selected Large Cap & Peer Banks
3rd Quarter
Net Charge-offs (%)
Loan Loss Reserve (%)
NPA Coverage (x)
3Q 08
3Q 07
3Q 08
3Q 07
3Q 08
3Q 07
BoA
1.84%
0.80%
2.17%
1.21%
1.53x
2.94x
JP Morgan
1.91%
1.07%
2.86%
1.76%
1.20x
2.70x
Wells Fargo
1.96%
1.01%
1.95%
1.11%
1.28x
1.26x
US Bank
1.19%
0.54%
1.71%
1.52%
1.94x
3.53x
Associated
0.94%
0.38%
1.51%
1.32%
0.70x
1.17x
Colonial
3.17%
0.27%
1.88%
1.14%
0.42x
2.46x
Cullen/Frost
0.30%
0.51%
1.25%
1.24%
1.94x
3.50x
Zions
0.91%
0.19%
1.45%
1.11%
0.66x
2.13x
Selected Bank Avg
1.52%
0.60%
1.85%
1.30%
1.21x
2.46x
Commerce
0.68%
0.44%
1.42%
1.28%
3.38x
3.23x
Selected Large Banks
Selected Peer Banks
Commerce Bancshares, Inc.
NY19
Asset Quality…
Commerce May Not Be Immune to
Credit Losses in a Sustained Down Cycle
Peer Group Concentrations - High Risk Categories
% of Total Loan Portfolio
Selected
Banks
Zions
Associated
City National
FirstMerit
Colonial
Peer Median1
Commerce
Home
Equity
Cons &
Dev
Comml
RE
Credit
Card
Other
Consumer
5.4
15.0
4.4
13.6
4.3
5.1
5.2
22.9
14.6
12.4
7.4
32.9
17.3
7.2
30.2
19.5
16.8
21.8
24.2
25.1
17.3
0.3
0.0
0.2
2.0
0.0
0.0
7.1
1.7
5.3
3.2
18.0
1.4
5.7
15.2
Note: City National (California); FirstMerit (Ohio), and Colonial (Florida) are concentrated in troubled
residential real estate markets.
1Peer
median also includes BOK, Cullen/Frost and TCF
Source: Morgan Stanley
Commerce Bancshares, Inc.
NY20
Asset Quality…
Net Loan Charge-Offs Over Last 5 Quarters
Consistently Better than Industry Average
Business C&I Net C/Os
Com R/E Net C/Os
1.20%
0.96%
1.00%
0.83%
0.80%
0.60%
0.80%
0.63%
0.43%
0.40%
0.25%
0.20%
0.00%
-0.20%
Sep-07
Dec-07
Mar-08
Jun-08
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
Sep-08
1.26%
1.14%
0.52%
0.39%
Sep-07
Consumer Net C/Os
2.52%
2.00%
2.07%
2.17%
2.10%
1.65%
1.40%
1.50%
1.00%
0.50%
0.00%
Sep-07
Dec-07
Mar-08
Jun-08
CBI
Dec-07
Mar-08
Jun-08
Sep-08
Credit Card Net C/Os
3.00%
2.50%
0.20%
0.14%
Sep-08
Largest 100
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
5.39%
4.05%
Sep-07
Other Banks
4.11%
Dec-07
4.63%
Mar-08
5.55%
4.19%
Jun-08
Sep-08
All Banks
Commerce Bancshares, Inc.
NY21
Commerce…
Our Challenges and Opportunities
Areas of Focus for 2009

Sustain Organic Growth Momentum in Key Business Lines






Better Manage Our Performance





Refine and deliver the value proposition
Grow our core deposit account base
Leverage payment systems capabilities
Further penetrate wealth customer segment
Develop out of footprint expansion
Employ actionable MIS
Deploy enhanced sales management and data mining capabilities
Sharpen risk management skills/risk based pricing*
Focus on productivity, cost control, expense management*
Negotiate through turmoil in both the economy and the financial
services industry
*Added to the 2009 AOF
Commerce Bancshares, Inc.
NY22
Our Plan…
Planning for the Future

Company-wide strategic planning initiative to focus on top-line growth
begun during 2007, advised by First Manhattan Consulting Group

Full implementation during 2008

A collection of corporate “areas of focus” that balance growth and
profitability/productivity/risk management:





Retail value proposition that drives organic deposit growth
Commercial payment system out of footprint expansion
Wealth management
Asset quality and risk-based pricing
Expense/productivity management
Commerce Bancshares, Inc.
NY23
Our Performance…
Core Retail Focus
$ in Millions
Key Long-Term Initiatives
100
90
80
70
60
50
40
30
20
10
0
Product
Enhancements
VP Delivery
Sales / Service
Tools
Self-Service
Upgrades
Challenges

Generate additional Fee Income

Compete with irrational deposit pricing by
competitors desperate for funding needs

Grow consumer loan book against
housing & economic headwinds

Increased FDIC Insurance Premiums
VP Proof Points
Relative Value over 10 Years
Highlights
YTD 2008 Plan Performance

All non-CD deposit categories exceeded budget

Contribution off plan, $28.5MM

Non-CD balance growth rate 3.8% vs. 1.1%
2005 - 2007 CAGR

DDA balances, $67MM

NIM under plan, $12MM

Lower NSF/OD fees, off 13.5%

Targeted sales campaigns accomplished goal to
lift NIM

PMMA promotion attracted $511MM in new
money and 5,800 new accounts
Commerce Bancshares, Inc.
NY24
Our Performance…
Core Commercial Focus
Key Long-Term Initiatives
Challenges
$45,000

Economic turmoil effecting all facets of line of
business

Potential for fee income to be effected by
economic slowdown

Problem loans will require increasing amounts of
officer time
$40,000
($ in Millions)
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Deposit
Acquisition
Payment
System
Regional
Banking
Asset
Quality
Healthcare
Banking
Expense
Mgmt
Highlights
YTD 2008 Plan Performance

Reprice credit relative to risk

Pre-tax contribution up 10%

Capitalize on safety/soundness

Total revenue up 8.9%

Work across business lines

Depository fees up 13%

Focus on expansion markets

Loans up 8.4%

Deposits up 7.5%
Commerce Bancshares, Inc.
NY25
Our Performance…
Wealth Management Focus
Key Long-Term Initiatives
40
Challenges

Decline in the market has reduced 2008 fee
income

Achieving our 2008 5% private bank loan
growth goal in a tough economy

Implementing important systems projects to
support long-term growth initiatives
$ in Millions
30
20
10
0
Private Bank
Growth
Emerging
CTC /
CTC / Retail Completely Family Office
Wealth Comml Sales
Sales
Commerce
Relative Value over 10 Years
Highlights
YTD 2008 Plan Performance

New asset management sales achieved
16.7% planned growth goal

Contribution below budget by $744M, or 1.8%
below plan

Asset management sales hit a record high of
$7.1MM

Deposits up $93MM, or 12%

Fee Income $1.9MM below plan; market
pressured

Net New Trust Fee growth ahead of plan
at $1.9MM

YOY Private Bank Core Deposits grow 12%

Joint Wealth Management Sales Program
with Commercial LOB implemented
Commerce Bancshares, Inc.
NY26
Our Performance…
Bankcard Products Focus
Key Long-Term Initiatives
$ in Millions
80
60
40
20
0
CCX-2
In-Footprint A/P Supplier Consumer Clearing Bkg Consumer
Penetration Enrollment Rewards Sponsorship Co-Branding
Prog
Challenges

Consumer Card Net C/Os continued at elevated
levels, projected to be over plan by 10%

Merchant outgoing interchange rate is
significantly higher/usage on Reward and
World Cards

CCX card spend is 22% under budget
Relative Value over 10 Years
Highlights

Consumer Direct Mail/Interest Rate Floors
growing portfolio

Merchant Retail Sales Volume exceeding plan

Existing Commercial Card Sales are up 20% YOY
YTD 2008 Plan Performance

Combined Contribution 4% under plan

NIM up 7% - spread driven

Consumer & Merchant Fees up 1% YOY

Comml Card Revenue up $7.5MM, 45% YOY
Commerce Bancshares, Inc.
NY27
We Invest in Technology to
Deliver Expected Customer Interaction
Volume Has Grown 26% Since 1999… Now 70% Electronic
1999
6.2MM
Teller
42%
Online
Bkg
1% Phone
Agent
2%
Average Monthly
Transactions
Phone
Agent
3%
Avg Monthly Web Visits
1999 – 58M
2008 – 3,434M
Technology Investments nearly 43% of Total FF&E Expenditures in 2008.
7.9MM
Online
Bkg
35%
ATM
34%
Voice
Response
21%
2008
Voice
Response
15%
Teller
27%
ATM
20%
Commerce Bancshares, Inc.
NY28
Leverage our Human Capital…
Comparison of Engagement Scores
Overall engagement score significantly surpassed both mid-cap, as well as all bank indexes
Commerce Bank
Engagement Index

2008
89%
8%
3%
2007
89%
8%
3%
2006
2007 Global Workforce Study (U.S.
Banking) Engagement Index
9%
87%
68% (all banks)
74% (mid-cap banks)
% Favorable
% Neutral
22%
3%
11%
% Unfavorable
Commerce Bancshares, Inc.
NY29
Industry…
2008 Total Return Performance
Top 25 Banks (by market cap)
Rank
Bank
Market Cap1
Total Return2
Price Return2
($ in Billions)
1
JP Morgan
$117.0
(25%)
(28%)
2
Wells Fargo
$113.7
2%
(2%)
3
BoA
$71.9
(63%)
(66%)
4
US Bancorp
$44.3
(17%)
(21%)
5
Citigroup
$38.9
(76%)
(77%)
18
CBSH
$3.3
5%
3%
25
Synovus
$2.7
(18%)
(21%)
$22.1
(34%)
(37%)
Avg Top 253
S&P 500 Bks
12/31/08
2From 1/1/08 to 12/31/08
3Not Weighted
1
Source: Factset
(50%)
NOTE: Total assets for this group range from a high of $2,521B for JPMorgan to
a low of $14B for Cullen/Frost. By total assets, Commerce ranks 31st and is the
5th best in total shareholder return among the top 50 banks.
Commerce Bancshares, Inc.
NY30
In Summary…
Revenue and Earnings Per Share Growth
Last 10 Years
$13.00
$3.00
$2.60
$11.00
$10.00
$2.20
$9.00
$1.80
$8.00
$1.40
Earnings Per Share
Revenue Per Share
$12.00
$7.00
$6.00
$1.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Revenue Per Share
Earnings Per Share
Commerce Bancshares, Inc.
NY31
In Conclusion …
Our Position Entering 2009

Relatively, in a better position than most of our competitors.


Did not take TARP.
A strong capital base: nearly 10% common equity to average assets.

Positioned to grow while many competitors focused on damage control.

Our core strategy of relationship business, leading with payment
systems solutions, generates high customer satisfaction ratings.

Our risk aversion mindset is attracting new prospects.
Commerce Bancshares, Inc.
NY32
In Conclusion …
Our Challenges for 2009

Reduced economic activity and higher unemployment will stress our
customers and communities.

Will be a difficult earnings environment for all companies, which will
pressure market related fee income and net interest income.

Higher unemployment and lower corporate profits generally increase
loan losses. We are budgeting an increase in our loan loss provision.
Commerce Bancshares, Inc.
NY33