Commerce announces plans to buy Colorado bank

In the strictly cash transaction valued at approximately $29.5 million, Commerce Bancshares will gain $96.8 million in assets, $70 million in gross loans and $75.5 million in total deposits, along with entry into the Colorado banking market.

The Colorado Commerce Bank was founded in 1976 and is a subsidiary of Commerce Bankshares Inc. Pending regulatory and shareholder approvals, the transaction with Commerce Bancshares will be completed late in the second quarter or early in the third quarter of this year.

“We are committed to the business community and share similar beliefs with our namesake bank (in) Kansas City, Missouri,” said Jim Lewien, president of Commerce in Aurora, Colo., in a news release. “Teaming up with an organization like Commerce … represents a good opportunity for us to offer even more to our customers.”

Commerce Bancshares President and CEO David Kemper noted that the move into Colorado is part of the bank’s long-term regional banking strategy.

“Colorado offers a growing market, excellent demographics … and is contiguous to our existing markets,” Kemper said in the release.

Commerce Bancshares is a $15.2 billion bank-holding company with about 360 locations in Missouri, Illinois and Kansas. Its principal subsidiary is Commerce Bank.

Commerce shares (Nasdaq: CBSH) closed Tuesday at $48.46, compared to a 52-week range of $43.43 to $50.77.