BANK OFFICIAL TELLS BUSINESSMEN ECONOMIC CLIMATE BRIGHT IN AREA

David W. Kemper likes the banking climate in the Midwest market.

"Nationally, banking had a good year in 1995," said Kemper, chairman, president and chief executive officer of St. Louis-based Commerce Bancshares Inc. "In our own market area we've been blessed with a diversified economy and I see a moderate growth for the future."

Kemper discussed banking and the economy Tuesday during a luncheon at the Holiday Inn with a group of area businessmen.

"We've had good growth in our operations," added Kemper. During the past year, Commerce Bancshares completed four acquisitions representing $1.1 billion of assets, including moves into Illinois and Kansas.

Mergers and acquisitions have accelerated everywhere since the interstate banking bill of two years ago, said Kemper. "We've seen a lot of banking consolidations, and we will see more."

A half-dozen years ago, there were as many as 14,000 banks in the U.S. That figure has declined to about 10,000, noted Kemper. "Over the next five years, consolidation may reduce U.S. banks to half that figure. We could be down to 5,000 banks by the turn of the century."

During the past few years, Commerce Bancshares has expanded and is a registered bank-holding company now operating 230 sites in Illinois, Kansas and Missouri, with hubs in St. Louis and Kansas City. Total Commerce Bancshares assets as of Dec. 31 were $9.6 billion.

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

"We're not a small bank," said Kemper. "But, we're not a giant bank."

There is a niche for banks the size of Commerce Bancshares, added Kemper.

"We're a `super community bank.'" said Kemper. "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."

People are interested in getting answers promptly, added Kemper. "We're small enough we can make quick decisions."

The company's credit-card business has grown consistently over the past five years, increasing at a 10 percent rate each year.

Commerce Bancshares is approximately 67th in total assets among U.S. banks and offers a full line of banking services, including investment management and securities brokerage.

On hand at Tuesday's luncheon was Joe Williams, vice president of the Commerce's Bancshares Investment Management Group, who discussed financial investments offered by the bank.