RankingBanking 26 Digital - Flipbook - Page 16
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“The fact is most banks make enough money if they keep out
of bad debts, and as I said to you by word of mouth,
I will forgive you for almost anything but bad debts.”
Dr. William Stone Woods, Bank of Commerce
guidance given to analysts. There are no earnings
the bank’s spring 2026 proxy filing. John Kem-
calls — instead, the bank schedules one-on-ones
per owns 1.2%, worth nearly $100 million as of
with analysts who cover the bank. “Make no
mid-July. Investors usually like management as
mistake, we work for our shareholders,” Kemper
owners — the thinking is that executives will do a
says. “But we want to be as transparent as pos-
better job if their own personal net worth is tied
sible about what our strategy is, what our results
to the success of the company.
are, disclose everything, and let the numbers
Commerce also has a unique geographic struc-
speak for themselves.” He adds that the executive
ture to its management team. About half of the
team wants to prioritize execution — and that
company’s executives live in Kansas City and the
means helping customers focus on what matters
other half in St. Louis — the two urban pillars
most — instead of worrying about hitting guid-
of the deposit franchise. The CEO and CFO are
ance numbers.
based in St. Louis, and other executives such as
“I think some banks do spend a lot of time,
Petersen are in Kansas City. Nearly every day, a
I don’t want to say, constructing a story, and a
private plane jets them across the state. The family
little less time focused on the things that actually
is perhaps best known in Kansas City, the bank’s
go into that story,” he says. “We’re really focused
longtime home. It’s where John’s uncle Jonathan
on execution.”
lives and is now retired after also working for the
bank. “I can’t think of a philanthropic or civic
The Secret to Success
Given the Kemper family’s long ties to Commerce, outsiders may wonder if nepotism is what
event I’ve been through where they don’t know
Jonathan or David,” Petersen says.
There are other aspects about the business
landed John his CEO job. But that concern is
model that truly drive Commerce Bank’s success.
dissuaded by the bank’s strong performance, Race
When it comes to performance, Kemper says he
says. There are a few aspects that help drive the
has a scorecard that he shows to the board. It’s
bank’s success.
similar to RankingBanking in that it looks at
For one, David and John alone own slightly
returns and capital but also has a strong empha-
less than 5% of outstanding shares, according to
sis on credit. “They never compromise credit for
