I have had CB stock for many years and they have generally been good to me, although last few years have been tough largely for reasons beyond their control. I also do some banking with Commerce and was generally pleased until recently when service has been disappointing. I am hopeful we can straighten out the issues.
While CB stock has previously outperform its peers, they are facing new, aggressive competition, changing regulations,and tough loan markets in a tough economy. Leadership may be a bit staid. (Sometimes the slow horse plods along and wins, sometimes he gets let behind). Probably my greatest concern is the underlying creation of wealth in the region as the Midwest region moves from a finished product production economy to being an raw material exporter and finished product importer. Concerns are probably as much about market as the actual company.
Commerce Bank is giving up its national charter and instead will become a Missouri state chartered bank. Not sure what to think of this decision or possible rationals aside from reported cost savings... although it might be a bit expensive to remove the NA designation from various locations.
link to article from Kansas City Star:
Commerce referenced as a takeover target... personally doubt, but attention is hopefully beneficial....
Any thoughts as to potential discontinuation of the cash dividend. Many companies are cutting their payouts and I am concerned that this might be in the offing. Any thoughts into the likelihood of a dividend elimination or cut?
I still like CBSH and think they did right in covering their clients who were potentially mislead regarding the ARS. In response to the previous post, it is my understanding that they traded the bonds for student loans, which while government guaranteed can require substantially servicing, especially in the event the notes become non-performing. I know of two banks that got pulled under in part due to the exposure to non-performing student loans.
Your referenced JD Powers report is not the the report referenced in this comment line. Yahoo deleted the original web link reference after my posting. The other website link contained an analysis reportedly producing a valuation of $22 value of the bank's stock. The item was deleted because the report related to the stock value of CBH, Commerce Bank, HQ in New Jersey Bank, which was acquired by a Canadian Bank. The deleted web reference page had included CBSH's ticker symbol in error which meant that that posting was in error.
The report related to the $22 valuation when read appears to be for the FORMER COMMERCE BANCORP (CBH) of NEW JERSEY which was acquired by Canadian Bank, Toronto Dominion Bank for $42 per share (a bit above the $22 reference) in Fall, 2007. The referenced website apparently picked up CBSH' symbol in error. Please be careful what you post.
This report when read appears to be for the FORMER COMMERCE BANCORP of NEW JERSEY which was acquired by Canadian Bank, Toronto Dominion Bank for $42 per share (a bit above the $22 reference) in Fall, 2007. The referenced website apparently picked up CBSH' symbol in error. Please be careful what you post.
a couple of interesting articles on Commerce Bank - article related to David Kemper from the 4th Qtr, 2006 Bank Director magazine, which also named CBSH as America's #2 Best Bank:
older, but informative presentation by David Kemper in 2004 to students and faculty at Webster University.
David Kemper acknowledged again for community involvement
My take is that price price change is the result of the announced and payable tomorrow 5% stock dividend. Some years the divident doesn't seem to phaze the price, but this year it did. Sometimes does. Sometimes doesn't. Was pleased to see CBSH entry into Oklahoma and more pleased to learn of their already strong presense there.
I checked and reviewed the article and my posting is correct. Missouri's Commerce Bancshares is ranked Number Seven (7). The list is published as the cover story, 4th Quarter issue, 2005 of Bank Director's magazine. Your referenced New Jersey Commerce Bancorp is rated Number Sixty Seven on the same list.
weblink to rankings: http://www.bankdirector.com/issues/2005_4/top150.pdf
According to 2005 Bank Performance Scorecard of "Bank Director" magazine,CBSH is the 7th best-performing, publicly held bank in the country. #1 was Bank of Hawaii. Local market peers include USBancorp which came in at #17, Bank of America #62, Capitol Federal #113, JPMorgan Chase #147, and Gold Banc #149.
A couple of items for your review...
"During the quarter the Company purchased 1.3 million shares of its common stock through its treasury buyback plan". (CBSH website - 2nd Qtr press releases)
"Commerce Bancshares Inc's Corporate Governance Quotient (CGQ�) as of 1-Jul-05 is better than 92.2% of Russell 3000 companies and 94.8% of Banks companies" (Yahoo finance profile page for CBSH).
It has always been interesting to watch CBSH and the market's response to the 5% dividend. While Buyers buy 5% less book value which should translate to a 5% price decrease, the past few years history of the dividend provided somewhat mixed report which I would assume is impacted by the excitement of the market, knowledge and expertise of buyer (it sold yesterday at X, it should be worth X today (or a month ago), where in reality is should be X less dividends (stock + corresponding cash dividend). Other factors would naturally be the market momentum.
These are the historic numbers since 2000.
2000 DIVIDEND (11.28.2000)*
11.27 close price $37.06 *
11.28 close price $36.00 *
12.28 close price $42.13 *
2001 DIVIDEND (11.28.2001) *
11.27 close price $39.59 *
11.28 close price $37.74 *
12.28 close price $38.56 *
2002 DIVIDEND (11.26.2002) *
11.25 close price $42.69 *
11.26 close price $39.43 *
12.26 close price $38.82 *
2003 DIVIDEND (11.25.2003)*
11.24 close price $49.24 *
11.25 close price $47.36 *
12.24 close price $48.39 *
My guess is that the dividend will be only partially reflected in the price, especially in part due to the current market price, but will at least fully recover by the end of the year.
* source of qoutes is price history link on Yahoo.