Commerce Bancshares Inc. (CBSH) is the largest bank holding company in Missouri, with significant operations in Kansas, Colorado and Illinois as well. Operating through a network of 204 full-service branches at December 31, 2006, CBSH provides diversified financial services organized under three segments. The Consumer segment (57% of total segment pre-tax income in 2006) includes the retail branch network, consumer installment lending, personal mortgage banking, bankcard activities, student lending, and discount brokerage services. The Commercial segment (35%) provides a full array of corporate lending, leasing, and international services, as well as business and government deposit and cash management services. The Money Management segment (including the Capital Markets group) provides traditional trust and estate tax planning services, and advisory and discretionary investment portfolio management services to both personal and institutional corporate customers, and manages CBSH's family of proprietary mutual funds.
In 2006, net interest income accounted for 59% of net revenue. Bankcard processing and trust represented roughly 11% and 8%, respectively, of net revenue, which is a bit more than the typical mid-cap bank. CBSH's growth strategy includes: expanding core fee businesses maintaining tight control over operating expenses continuing its strict focus on risk management preserving its strong capital position and investing in technology.
Real estate loans (including both commercial and consumer) are a smaller portion of CBSH's loan portfolio than for many competitors, accounting for only 46% of average loans outstanding in 3Q07, followed by commercial (29%), consumer (15%), and other (9%). The securities portfolio continues to decline on a relative basis, now a more manageable 23% of average earning assets in the quarter. Non-interest-bearing and other low-cost deposits funded 56% of average earning assets, with time deposits and borrowing funding 27% and 14%, respectively. At September 30, 2007, CBSH had $16.0 billion in total assets, $10.8 billion in loans, and $12.0 billion in deposits.