BANK EXECUTIVE SEES CHANGES IN INDUSTRY

The banking scene is changing, but Commerce Bancshares Inc. isn't for sale, said David W. Kemper, chairman, president and chief executive officer of the St. Louis-based company.

Kemper Thursday discussed banking and the economy during a luncheon of area businessmen and women. The luncheon was held by Kemper and Cord Polen, Commerce Community Bank president at Cape Girardeau.

"The latest merger talks between NationsBank Corp. and BankAmerica Corp. will create the nation's first coast-to-coast bank," said Kemper. "And there will be other mergers."

The thinking apparently is that "bigger is better," he said.

The latest giant merger between two automotive firms -- Daimler-Benz and Chrysler -- is global.

"What we have to figure is how we will figure in all of these mergers," said Kemper. "We still like the community banking concept. We want to offer local service with local people."

The Cape Girardeau market is a good one, said Kemper. "We have good representation from the retail sector, and the commercial area is strong."

Commerce recently opened a branch in Cape Girardeau.

During the past few years, Commerce Bancshares Inc. has expanded and is a registered bank-holding company operating 280 sites in Illinois, Kansas and Missouri. Total Commerce assets at the end of the first quarter of 1998 were $10.4 billion.

"We're not a small bank," said Kemper. "We're a super community bank. We have the size to be competitive, but we're small enough to offer all the services and have community orientation and responsiveness to our customers."

The first-quarter earnings report for Commerce ending March 31 revealed an increase of 17 percent in earnings of $34.5 million. That was up from $29.4 million during the same period a year ago.

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

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

"We feel positive about the stock market and the economy," said Cox. "We feel that interest rates will remain down, and the inflation rate will continue to range from 1.5 to 2 percent.

Quarter-to-quarter changes in the stock market are extremely volatile and will probably remain that way, he said.