COMMERCE BANCSHARES, INC. REPORTS RECORD EARNINGS PER SHARE FOR THE FIRST SIX MONTHS OF 2001

Commerce Bancshares, Inc. announced record earnings of $1.41 per share for the first six months of 2001, an increase of 6% compared to $1.33 per share during the same period in 2000. Total earnings amounted to $89.7 million in 2001, compared with $86.9 million in 2000. During this period the return on average assets was 1.58%, the return on realized equity was 16% and the efficiency ratio was 58%.

For the second quarter ended June 30, 2001, earnings per share amounted to $.72, an increase of 3% compared to $.70 per share in the same period last year. Total earnings for the second quarter amounted to $45.8 million compared with $45.6 million last year and the return on realized equity was 16% while the return on average assets was 1.58%.

In announcing these results, David W. Kemper, Chairman and CEO, said, "We are pleased to report continued growth in earnings in the second quarter and for the first half of the year. This increase in earnings was led by double-digit growth in non-interest revenues from key business segments. Also adding to the period results were continued control of non-interest expense coupled with lower credit costs. For the first six months, core non-interest revenues grew by 11%, while core non-interest expense grew by 4%. Non-interest revenues now comprise 37% of total revenues compared with 29% five years ago."

Mr. Kemper continued, "The effects of a slower economy continue to constrain loan growth which, together with rapidly declining interest rates, have slowed growth in net interest income this year. However, our deposit base grew during the quarter providing the Company an opportunity to attract lower cost funds. Asset quality continues to be very strong. Net charge-offs for the first six months of 2001 were .44% of average loans compared to .39% in the previous year. Additionally, our loan loss reserve increased to 1.68% of total loans this quarter while our non-performing assets remain at relatively low levels."

Total assets at June 30, 2001 were $11.7 billion, total loans were $7.8 billion, and total deposits were $9.5 billion. At June 30, 2001, the allowance for loan losses totaled $131 million and was 492% of non-performing assets.

Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The Company currently operates in over 340 banking locations in Missouri, Illinois, and Kansas. The Company also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital, and real estate activities.

Posted to the Company's web site is management's discussion of second quarter results. To see this information please visit our web site at www.commercebank.com.

For further information contact:
Jeffery Aberdeen, Controller
P.O. Box 419248
Kansas City, MO 64141-6248
(816) 234-2081
Web Site: http://www.commercebank.com
Email: mymoney@commercebank.com

(Amounts in thousands)
3/31/01
06/30/01
06/30/00
Non-Accrual Loans
$26,897
$24,458
$15,544
Foreclosed Real Estate
$2,322
$2,171
$1,227
Total Non-Performing Assets
$29,219
$26,629
$16,771
Non-Performing Assets to Loans
.37%
.34%
.21%
Non-Performing Assets to Total Assets
.25%
.23%
.15%
Loans 90 days & Over Past Due - Still Accruing
$19,891
$20,268
$18,250


View the Second Quarter 2001 earnings release in HTML or download the full report in PDF*.

Symbol: CBSH
Web Site: www.commercebank.com
E-mail: MyMoney@CommerceBank.com