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growth,” Chapman says. Kim agrees. “We’ve been
million acquisition this year of a bank in Florida,
in business 160-plus years. We manage the busi-
FineMark Holdings of Fort Meyers, which the ex-
ness to be around another 160 years,” he says.
ecutive team says had a complementary business
Secondly, close to 40% of the bank’s income
in trust and private banking. In addition, some
is fee-based, especially coming from its payments
of Commerce’s customers have second homes or
division, which includes credit cards, and its trust
businesses on the western side of Florida, close
and wealth management business. Chapman and
to the 13 branches recently acquired. It also
Kim both say the bank’s business model is strong
announced in June the planned purchase of an
because of its low-cost deposit franchise, built on
investment banking firm in St. Louis to support
decades of being present in Missouri and southern
business clients.
Illinois. Low-cost deposits, combined with high fee
The acquisitions stood out for Commerce,
income businesses and strong customer relation-
which rarely engages in M&A. Its last bank
ships, have fueled Commerce for decades. “We
purchase was of Summit Bancshares in Tulsa,
tend not to go toward single dimensional things,”
Oklahoma, 13 years ago. In the end, culture mat-
Kim says. “Even our credit card portfolio is very
ters, and it’s hard to find another bank that will
well penetrated into our deposit portfolio.”
fit Commerce Bank’s credit standards. “You’re
The drawback to that model is that investors
wholesale adding a lot of things to your balance
view the bank as low growth compared to peers.
sheet,” Kemper says. “You’d better be sure about
High single-digit loan growth is about as juiced
what those things are.”
as Commerce’s performance gets, Kim says. That
Not everyone is a good fit for Commerce, either.
has led the stock to fall more than peers this year,
“We value people who are collaborative,” he says.
analysts say.
“We value people who like to work on a team. We
“Commerce has just focused on banking some
value people who are curious.” The people who
of the highest quality companies, commercial
don’t do well are the “stars,” which he describes
businesses across their footprint in the Midwest,”
as people who are focused on themselves.
Race says. “Some of those businesses are more
Kemper reflects on all of this and what has
mature in nature and aren’t investing and don’t
made his tenure a success from a conference
have as much in terms of capital needs or needs to
room in the Commerce Bank Tower. Behind him,
draw lines of credit.”
yellow wildflowers wave in the breeze from a
The bank still trades at a premium to peers —
rooftop garden. He admits the business model is
as of late July Commerce was trading at a price
simple enough, with its high fee income, low-cost
to tangible book value of 214% compared to a
deposits and strong credit. “We’re obsessed with
peer group of 175%, according to Rodis. Its price
taking care of our customers and building long-
to earnings ratio for fiscal year 2027 was 13.1%
standing relationships,” he says. “If our eyes are
compared to a peer group of 10.5%.
on the field and not on the scoreboard, and we’re
really taking care of our customers, that’s what’s
Growing Into Growth Markets
The bank has been trying to counterbalance its
going to create the results that you see at the end
of the day.”
slower growth in the Midwest by entering faster
growth areas in recent years. It entered Denver
in 2007, Nashville, Tennessee, in 2008, Dallas in
2012, and Houston in 2018. It also made a $520
Naomi Snyder is editor-in-chief of Bank Director.
