Commerce Bancshares, Inc. CBSH is well-positioned for revenue growth, aided by the moderate rise in loan demand and its efforts to strengthen non-interest income. However, a steady rise in operating expenses and a lack of loan diversification are headwinds.The company’s growth strategy is driven by organic expansion efforts. Though revenues declined in 2020, the same witnessed a five-year CAGR of 4% (ended 2021). The upside mainly stemmed from solid loans and deposit balances (which recorded a CAGR of 1.8% and 9.9%, respectively, over the same period), along with strength in fee income sources.The continued rise in the demand for loans and solid non-interest income performance are likely to keep driving CBSH’s top-line growth. Our estimates for total revenues suggest a CAGR of 6.1% over the next three years.Further, the company maintains investment grade ratings of A- and a stable outlook from Standard & Poor’s. This renders CBSH favorable access to the debt market. Despite a high debt burden, the company’s earnings strength implies that it will be able to meet debt obligations in the near term, even if the economic situation worsens.However, Commerce Bancshares has been witnessing a persistent rise in non-interest expenses. Expenses recorded a CAGR of 2% over the last five years ended 2021. The rise was mainly due to higher salaries and employee benefit costs. Expenses are expected to remain elevated as the company invests in technology upgrades. Our estimates for total non-interest expenses suggest a CAGR of 6.6% over the next three years.Like CBSH, several other banks like East West Bancorp, Inc. EWBC and Zions Bancorporation ZION are facing mounting operating costs. For EWBC, though the metric declined in 2020, it witnessed a CAGR of 4.5% over the last five years (2017-2021). Similarly, for Zions, costs declined in 2020, while recording a five year CAGR of 1.3%. Overall costs are expected to stay elevated due to an increase in headcount, inflationary pressure and investments in technology.Despite the recent rate hikes and expectations of further rises this year, CBSH’s net yield on interest-earning assets is expected to remain under pressure for some time in the near term. We project net yield on interest-earning assets to be 2.53% for 2022 and 2.54% for both 2023 and 2024. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.>>Show me how I could profit from the metaverse!Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zions Bancorporation, N.A. (ZION): Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH): Free Stock Analysis Report East West Bancorp, Inc. (EWBC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research