BANK: MERCANTILE CLOSES COLONIAL FACILITY

CAPE GIRARDEAU - Mercantile Bank of Cape Girardeau has decided not to acquire the Colonial Federal Building at 2027 Broadway. It will cease operations at the facility on Friday.

Mercantile purchased the assets of Colonial Federal on Nov. 9 after Colonial was declared insolvent by the U.S. Office of Thrift Supervision. The Resolution Trust Corp. was named receiver of the institution and is continuing to operate with a staff in the Colonial building to close things out.

In acquiring Colonial, Mercantile did not purchase the building, which will eventually be sold by the Resolution Trust Corp.

"We were waiting for appraisal information from the RTC, but considering our location on North Kingshighway, we made the decision that it did not make sense to have two operations relatively close," explained Karen Green of Mercantile Friday.

"We felt like we could serve the newly acquired customers from this location, and not interfere with their convenience."

Mercantile's main bank, at 325 N. Kingshighway, was recently expanded. The expansion was finished before Colonial was acquired.

Mercantile also has branch offices at West Park Mall and in the Town Plaza Shopping Center.

"We think the flow of traffic has transferred to the Kingshighway office and we have the other two facilities nearby also," noted Green.

Green said the RTC will eventually sell the Colonial building and still has some staff operating out of it.

Mercantile closed the lobby of the Colonial building at the end of the year and has kept the drive-up windows open.

Green pointed out that Mercantile has hired eight of the approximately 30 employees Colonial had.

Another employee from Colonial was hired by Mercantile Bank of St. Louis, and works at the main bank in Cape Girardeau.

Green said it is possible that other Colonial employees will be hired later.