CAPITAL BANCORPORATION OFFERS PUBLIC TRADING OF COMMON STOCK

Capital Bancorporation of Cape Girardeau has converted to public trading of its common stock, becoming what is thought to be the only bank holding corporation in out-state Missouri to do so.

Fewer than 10 Missouri banks offer public trading of stock, and they are concentrated in the Kansas City and St. Louis areas.

Capital offered just over 1 million shares of common stock at $14.50 a share. Payne Webber Inc., purchased the shares and is distributing them.

Capital had several reasons for switching from self-distribution, said Van Puls, president and chief executive officer.

"This strengthens our balance sheet, increasing our capital ratio," he said. "It creates a liquid, public market for our existing and new shareholders and it permits us to increase the dividend to our shareholders from 36 cents to 60 cents a share."

The move created a $13.5 million infusion of funds into the company coffers. Puls explained that $5 million will be used to "reduce corporate debt and for general corporate purposes."

Puls said, "We have no definite plans for acquisitions now, but we are alert for future opportunities."

The balance of $8.5 million is being used to redeem the corporation's preferred stock. Capital had 8,475 shares of cumulative perpetual preferred stock outstanding at $100-a-share stated value. A total of $1 million of the common stock sale went to a 7 percent underwriting fee.

Puls said 40 per cent of the new common stock will be held by institutional investors and the remaining 60 percent will be sold to the general public.

"The stock will be traded on the NASDAQ over-the-counter marketing system," he said. "People can go through any of its registered affiliated stock dealers to buy and sell the stock." The stock began trading Thursday, ranging from $13 3/8 to $15 per share, said Puls. Its symbol is CABK on the market listing.

Until converting to public trading and issuing the new shares, Capital Bancorporation had 1.5 million shares of common stock outstanding, owned by 961 shareholders. They came about through past acquisitions and company self-distribution.

Capital, formed in 1983 in Jackson, owns three banks in Southeast Missouri, one in central Missouri and one in Clayton with a total of 17 locations. The headquarters is at 407 N. Kingshighway.

Its most recent acquisition was the May 1990, purchase of First Federal Savings and Loan Association of Southeast Missouri from Resolution Trust Corporation.

As of June 30, Capital's total deposits were $503 million, which was down $48 million from the same time a year ago. The 9 per cent decrease occurred after the First Federal transaction due to attrition from former First Federal customers' removing deposits and accounts as a result of differences in service charges and interest rates, Puls said.