New bank going to give mayor run for his money

It's just been a little over a week since Bank of America executives Jay Knudtson and Steve Taylor announced they were jumping ship to run a new bank in Cape Girardeau that would help them return to their community-oriented roots.

Well, Mr. Taylor and Mr. Mayor are going to have some company.

The Missouri Department of Finance confirmed for me Friday that an application has been granted to 1st Community Bank, which is based in Poplar Bluff, Mo., to build a Cape Girardeau branch on the southwest corner of Mount Auburn Road and Independence.

They plan to open the bank in the early spring.

That's about four months after Mr. Mayor and Mr. Taylor plan to open First Missouri State Bank -- also based in Poplar Bluff -- right across the street from where 1st Community Bank is going to go. (First Missouri is taking over the Bank of America branch on Mount Auburn.)

1st Community Bank executive vice president Tim Frye said the new building will be about 7,300 square feet and will be a full-service commercial bank with a drive-through and ATM. He said that they plan to break ground by the end of next month.

The bank's Web site -- www.1stcombank.com -- says that the bank's corporate headquarters is located in Poplar Bluff. They also have branches in Campbell, Malden and Bernie.

A quick search of the Federal Deposit Insurance Corp.'s Web site -- www.fdic.gov -- also shows that the commercial bank has $154 million in deposits.

Mike Devaney, a professor of finance at Southeast Missouri State Missouri, said he believes that community banks have found a nice niche in a world where total bank numbers are on a decline amid huge consolidations and acquisitions.

He noted that out of 91,000 banks in the United States, at least 50 percent have assets of less than $100 million meaning most banks are smaller banks. (Of course, 2 percent of the banks have half the country's bank assets.)

Devaney, who specializes in banking and the stock market, said populist community bank themes often appeal to the masses, especially in agricultural communities like Southeast Missouri.

"They say we're local, we understand local needs," he said. "They'll say the other banks are only doing business here because of past acquisitions. They'll say if you go to those banks and apply for a loan, then the decision is made thousands of miles away."

Smaller banks are also trying to broaden their appeal by diversifying, he said. Some have shifted focus to other services like securities underwriting, trust services and insurance.

He thinks that if any banks disappear, it will be mid-sized banks, not small ones.

I find it all interesting.

Community banks are popping up all over with more and more regular folks looking to escape the faceless corporate banks. Banks like Hizzoner's new bank (sorry, wrong mayor, wrong columnist), and this new bank are going after the smaller guys.

To my way of thinking this is a good thing. It will be good for people like me who aren't looking for $1 million accounts to have several banks competing for our money. Who comes out on top will depend on who has the best offer.

Free checking, anyone?

Milling around

The SEMO Port Authority at Scott City, Mo., is getting a new tenant. Dan Overbey, executive director of the port, said that Cape Milling hopes to open at the facilities formerly owned by Riverport Terminals by the end of the year.

Cape Milling will be in the business of buying corn and grinding it into corn meal. The corn meal will then go into smaller paper bags with plastic liners and sold to the government for certain USDA food aid programs (largely developing countries).

The new company is being put together by Terry Kleisinger, who is from Edwards, Colo. Overbey said they hope to have as many as 30 employees a few years down the road. He said they are planning to invest $1 million in the facilities.

The business will consist of three metal buildings with a gross size of 27,166 square feet. The facility is designed to receive bulk products from either trucks, barge or rail.

Twist and shout

The Spirit of Harmony Yoga Studios has opened at 1636 Independence Suite C, owner Lori Mahala announced. Mahala, a yoga instructor for the past several years, said the studio will feature five yoga classes per week and students will learn yoga poses, breathing techniques and meditation.

She said interest is up.

"The media has really helped to promote this," she said. "Plus, it's really wonderful for physical and emotional well-being."

She even promised that people can get one free class if they want to stop by. (What if you can't even reach your knees, let alone your toes?)

On merits

Fewer than half of Americans believe merit is what counts most in job advancement, according to a nationwide telephone survey by J. Howard & Associates.

The survey of 1,010 Americans found that while 39 percent of employed Americans think merit is key to promotion, more than half cite other factors, including seniority (26 percent), personal connections (17 percent) or luck (6 percent).

"The workplace meritocracy has always been a belief held dear by Americans," said Mike Hyter, president and chief executive of J. Howard. "For years it was a matter of faith that merit will be rewarded. But trust in the meritocracy is losing ground."

As a result, he said, "More people now regard merit promotion as a myth, or at least secondary to who you know or how long you've been around."

The survey found younger workers are more likely than older ones to think seniority is most important, while trust in connections is consistent whether a worker is 18 or 65.

And though there was no significant difference between blacks and whites in their trust in merit (42 percent and 40 percent, respectively), 25 percent of blacks credited connections for their promotions, while just 15 percent of whites felt that way.

Quickly

The Dairy Queen at 31 S. Kingshighway, owned for years by Frank Bean, has been sold to King William Management Inc.

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