Building boom in Jackson banks

Business Today

JACKSON -- Driving down East Jackson Boulevard, the drive-through possibilities are numerous -- Hardee's, Taco Bell, McDonald's ... and Union Planters, Commerce, First National.

In Jackson, the banking business has grown since the early 1990s. Today, there are more banks, 10, than fast-food franchises, nine.

In 1991, only two banks served the county seat. At that time, Cape County Bank became Union Planters. The Jackson Exchange Bank was shut down by the FDIC and a portion of its deposits and loans were purchased by Boatman's.

There were roughly 9,000 residents in the town, and the banking business was unstable at best.

Fast forward to 2003.

The population has grown to 12,000, an increase of 25 percent. Meanwhile, the number of banks has increased by 500 percent.

"What we're finding is that we've done very well in the Jackson market," said US Bank president Lowell Peterson. "This is our fourth year. It's an excellent, excellent location, and we've done well over our projections."

What makes Jackson so attractive is a combination of elements. Some say the growth is not a trend specific to Jackson, but one that is being experienced in many progressive communities.

It started in the late 1980s when strict regulations were lifted on big national banks in many states, including Missouri. Bigger banks were allowed to spread across the country without having to be rooted in a state. That's when big-bank branches started popping up in towns everywhere.

But other factors contributed to the bank boom in Jackson, many bankers say, including the local economy.

In neighboring Cape Girardeau, 17 banks serve 35,000 residents. That's about one bank per 2,000 people. In Jackson, there is one bank for 1,200 people.

"There's a lot of old money in Jackson, plus there is new opportunity with new businesses like Procter & Gamble," said Chris Hutson, vice president and community bank manager at Jackson's Union Planters. "Plus you've got two hospitals and a university in Cape. People don't realize what a regional economic hub Cape Girardeau and Jackson is. There are a lot of banking opportunities."

Although Jackson has seen an extraordinary growth in the number of banks, it has relied on help from banks in Cape Girardeau.

Of Jackson's 10 banks, only People's Bank and First Midwest Bank do not also have a location in Cape Girardeau. The trend has been for a bank to first build a location in Cape Girardeau, then expand into Jackson.

BANKS IN JACKSON

Bank of America

Bank of Missouri

Capaha Bank

Commerce Bank

First Midwest Bank

First Missouri State Bank

First National Bank

US Bank

Union Planters Bank (three branches)

People's Bank

* Wood and Huston has an ATM machine