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KANSAS CITY, MO - June 8, 2004 - Moody's Investors Service upgraded the long-term ratings of Commerce Bank, N.A. (long-term deposits to Aa3 from A1; bank financial strength to B from B-). At the same time, Moody's confirmed the Prime-1 short-term rating of Commerce Bank, N.A. and that of its parent, Commerce Bancshares, Inc. The outlook for all ratings is stable.
Moody's said that the upgrade reflects the continuation of Commerce's healthy core earnings and superior asset quality from its regional banking franchise, centered on St. Louis and Kansas City. Commerce's franchise strengths -- a conservative credit culture, significant emphasis on attracting core deposits, and a diversified business mix -- have generated consistently strong results throughout the credit cycle. The stability of Commerce's profitability and asset quality performance is a primary attribute supporting the ratings upgrade.
Moody's also mentioned that Commerce's solid core deposit position in all of its major markets, its ample liquidity and its strong management team are all positive attributes that support the rating upgrade. In addition, despite having a large securities portfolio, Commerce faces limited extension risk from a sharp rise in interest rates as mortgage-backed securities make up a relatively small percentage of its investment portfolio.
"We are pleased with the actions taken by Moody's to increase the ratings of our principal banking subsidiary. The strong credit culture and consistent earnings mentioned by Moody's have been a hallmark of our Company for many years," said David W. Kemper, Chairman and CEO of Commerce Bancshares. "Our super community banking platform allows us to provide high service levels and competitive products while generating the type of financial returns that enabled Moody's to upgrade our rating."
The following ratings were upgraded:
Commerce Bank, N.A. -- long-term deposits to Aa3 from A1, issuer rating and long-term OSO rating to Aa3 from A1, and bank financial strength to B from B-.
About Commerce Bank
Commerce Bank is the principal subsidiary of Commerce Bancshares, Inc. (NASDAQ: CBSH), a $14.5 billion regional bank holding company. For more than 135 years, Commerce has been meeting the financial services needs of individuals and businesses. Commerce provides a diversified line of financial services, including business and personal banking, wealth management and estate planning and investments through its affiliated companies. Commerce currently operates in approximately 330 locations in Missouri, Illinois and Kansas. Commerce also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital and real estate activities.
For more information contact:
Nancy E. Levin, APR
Director, Regional Marketing
816-234-2632
Website: www.commercebank.com
e-mail: mymoney@commercebank.com
SYMBOL: CBSH
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