Another bank coming to town

Some of you will moan, but a new bank is coming to Cape Girardeau. But quit your griping. There must be a need for this many banks in our area. And the experts will tell you that the more banks you have, the better your community's economy is doing.

Banterra Bank is the newest entrant to the Cape Girardeau banking arena. Tom Kelsey, commercial broker with Lorimont Place Ltd., who handled the real estate transaction, confirmed the Eldorado, Ill.-based bank will open a loan origination office at 1021 Kingsway Drive in the Sunset Towers office building.

Ed Carroll, a longtime banker in the Cape Girardeau region, will oversee the Cape Girardeau operation with future plans to open a full-fledged banking operation in the city. Carroll has been associated with several other area banks over the years.

Banterra has 27 locations -- 25 in Southern Illinois, one in Evansville, Ind., and one in Paducah, Ky. This location will be its first venture into Missouri. Banterra has grown from a single bank with $11 million in assets in 1975 to nearly $1 billion in assets.

The bank's focus is on basic commercial and retail banking functions; however, the company also provides a one-stop opportunity for a range of financial services. Kelsey said he understood that the bank would open the first week of August in the new location.

I blogged this banking item last week and it was followed by some intellectual, high-minded comments from my readers. (One was "I'd trade half the banks in Cape for a Waffle House or an IHOP.")

But we just looked at the local banking scene in the July issue of Business Today, and it should make you happy to see a new bank. For those of you who don't get BT (why don't you?), here's what we found out from local banking and financial experts:

* There are 13 banks in Cape Girardeau. Jackson has 10 banks.

* In the late 1990s, Cape Girardeau experienced a wave of new banks when Bank of Missouri, Alliance Bank and Capaha Bank opened, bringing to eight the number of banks in the city.

* At one time more than 70 percent of deposits here were held by national banks, but that figure has decreased due to the success of community banks. The trend is national.

* In the late 1990s, Bank of America was the biggest bank with 27 percent market share of Cape Girardeau County. US Bank had 24 percent market share, and Regions Bank had 23 percent market share. The most recent data available from the Federal Deposit Insurance Corp. shows those three banks now hold 45 percent of the market share of Cape Girardeau County.

* During the past five years, five community banks have opened in Cape Girardeau -- 1st Community, First Midwest, First Missouri State Bank of Cape County, First State Community and Security Bank & Trust.

* Cape Girardeau is a regional economic hub that has major medical centers and a university -- and that is good for banking.

* Cape Girardeau has a tradition of being a banking town. There were stable banks and savings and loans here long ago that over time were acquired by major national banks. It has been established that this market is vibrant and can support smaller banks as well as national banks.

* And the more banks you have, the more they have to fight for your business.

So here's the question you have to ask yourself the next time a new bank opens: When has competition ever been a bad thing?

* New Pizza Hut going in near university: Pizza Hut No. 2 is coming to Cape Girardeau. A&D Management Co., which owns the Pizza Huts in Cape Girardeau and Jackson, has applied for a liquor license for a new Pizza Hut at 820 N. Sprigg St. in the spot once occupied by Burrito-Ville.

A&D, which is based in Mount Pleasant, Iowa, is shooting for a Sept. 1 opening date. A&D owns 11 Pizza Huts in Missouri, including in Festus, Ste. Genevieve and DeSoto. It also owns Pizza Huts in Iowa, Colorado, Nebraska, Illinois and Minnesota.

* Frugal Fashions does a good thing: When Frugal Fashions and Fabulous Finds, a resale shop, recently relocated from Perryville to Cape Girardeau, it lasted only two weeks.

But when one of Brandy Ramey's partners "bailed" on her, she knew somebody could use the items that were just gathering dust in her store at 419 Broadway.

How about the residents of New Orleans, who were devastated by Hurricane Katrina?

She donated the $8,900 worth of merchandise, mostly clothes, to the Salvation Army, which was going to give the items to those who lost everything to Katrina.

It must have been disappointing for Ramey's business venture to fail, but she did a good thing for people who really need it.

* Funny Burrito-Ville: Have you seen the newest marquee sign at Burrito-Ville in response to my story on people who write bad checks and then have their names posted on marquee signs? It reads: "Morley thinks we're funny. Vote Swingle."

Swingle was quoted in the story as saying that he admires a business owner with a sense of humor.

Looks like you've got the Burrito-Ville vote locked in, Morley.

Scott Moyers is the business editor of the Southeast Missourian. Send your comments, business news, information or questions to "Biz Buzz," 301 Broadway, Cape Girardeau, Mo., 63702-0699, or e-mail them to smoyers@semissourian.com or call (573) 335-6611, extension 137.