BANK EXEC DISCUSSES DEVELOPMENTS

Mergers and acquisitions have accelerated everywhere, but David W. Kemper still likes the idea of being a premier "super community" bank in the Midwest.

"Our marketplace is Missouri, Illinois and Kansas," said Kemper, chairman, president and chief executive officer of St. Louis-based Commerce Bancshares Inc. "These areas provide good growth potential with their stable economies and diversified industries. We've had good growth in our operations during the past year."

Kemper discussed banking and the economy Thursday during a luncheon at the Holiday Inn with a group of area businessmen. The luncheon was hosted by Kemper and Cord Polen, Commerce Community Bank president at Cape Girardeau.

Cape Girardeau and Jackson branches, which opened five years ago, are under the Commerce Regional Group along with Poplar Bluff Commerce Banks.

"We're seeing more and more consolidations," he said. "But, at the same time, we're seeing continued good performances by some community banks. I like to think of Commerce as a super community bank."

Kemper mentioned NationsBank's recent acquisition of Boatmen's Bank as one of the largest mergers.

Seven or eight years ago there were as many as 14,000 banks in the U.S. That number has declined to about 4,000, said Kemper. "Over the next five years consolidations will reduce those figure even more."

Commerce Bancshares Inc. has acquired a number of banks -- more than 15 -- over the past two years. The latest was acquisition of Shawnee State Bank, a $205 million community bank in a rapidly growing area in the Kansas City area.

"On the merger front, we will continue to seek opportunities for cost-effective acquisitions in communities surrounding our existing markets," said Kemper.

Kemper emphasized that Commerce would stay focused on the needs of the people and good, customer relationships.

Commerce Bancshares is one of the largest bank holding companies in the Midwest.

"With almost $10 billion in total assets, we're the 58th largest bank in the U.S.," said Kemper. "And we're the second largest in Missouri."

Kemper said Commerce has enough size to be competitive in its offerings, but stays close to customers in the community.

Commerce operates in more than 250 locations in Missouri, Illinois and Kansas.

During the most recent quarterly report ending March 31, Commerce Bancshares Inc. announced record earnings of $29.4 million, up 8 percent from the same quarter a year ago. Total assets March 31 were $9.6 billion.

Also speaking at Thursday's luncheon was Paul Cox, vice president of Commerce's Investment Management Group, who discussed the economy, interest rates and stocks.