Case Study: a community bank grows commercial loan business with Commerce Bancshares’ CMG ALCO consulting

Community Bank grows loan business after adding CMG to it's asset-liability committee.

A community bank faced challenges with its asset-liability committee (ALCO) in pricing loans and funding the bank, particularly during a period of economic recession and undercapitalization. The ALCO, composed of members who "wear many hats," needed a third-party partner to provide expert guidance and explain complex concepts clearly. They turned to Commerce Bank's Capital Markets Group (CMG) for its ALM consulting service.

Commerce Bank's CMG implemented a detailed assessment of the bank's ALM risk profile and began leading strategy discussions at quarterly ALCO meetings. The solution provided clear insights that helped the bank better manage interest rate risk and optimize loan terms and funding strategies. As a result, the bank achieved a $5 million increase in commercial loans by offering more competitive pricing and terms, significantly improving its market position and addressing previous regulatory concerns.