Commerce Bank reports record earnings for 2001

Commerce Bancshares Inc. announced Jan. 16 record earnings of $2.73 per share in 2001, up 4 percent from $2.63 per share in 2000.

Commerce's total earnings last year amounted to $182 million, which generated a return on realized equity of 15.3 percent and a return on assets of 1.55 percent, according to a Commerce press release.

Fourth-quarter earnings also were up, with total earnings of $46.8 million compared to $46.2 million in fourth-quarter 2000.

Earnings per share reached 71 cents, a 3 percent increase from the same period a year earlier.

Also during the fourth quarter, Com-merce Bancshares declared and paid its eighth consecutive 5 percent annual stock dividend.

"In the midst of a difficult economic environment, we are pleased to report record earnings," said Commerce Chair-man and Chief Executive Officer David W. Kemper.

"The increase in earnings was mainly the result of solid growth in noninterest income coupled with good expense control," he added.

He said noninterest income was up 10 percent over last year and now comprises 37 percent of total revenue.

Kemper added that because of a contracting economic environment in the banking industry's markets, average loan balances declined slightly from both the previous quarter and previous year.

"However, average deposits have continued to grow at an annualized rate of 7 percent," he said. "We will continue to monitor the credit quality of our customers and look for opportunities as economic conditions improve to further in-vest in our franchise."

As of Dec. 31, 2001, Commerce Bank's total assets were $12.9 billion, total loans were $7.6 billion and total de-posits were $10 billion.

The company operates in more than 340 locations in Missouri, Illinois and Kansas, and has subsidiaries involved in mortgage banking, credit related insurance, venture capital and real estate activities.