CEO NAMED: COX WILL LEAD FIRST EXCHANGE CORP.

JACKSON -- Josh C. Cox Jr. has been named president and chief executive officer of First Exchange Corp. and president and CEO of Jackson Exchange Bank.

Cox, a native Virginian who has been in the banking and financial field for more than 30 years, was most recently associated with First Guaranty Bank and Trust Co. of Hammond, La. There, he served as president and CEO, and was a member of its board of directors.

Additionally, Cox has acted in a consulting capacity to a variety of banks labeled as "problem banks" by regulatory authorities.

Cox replaces Lee Whitler as president and CEO of the First Exchange Corp. Whitler, a senior officer at First Exchange Corp., has been serving as interim president and CEO since July, when Donald R. Chilton resigned.

"Whitler will continue with the corporation as chief financial officer," said Cox, who succeeds David Beasley as president and CEO of Jackson Exchange Bank.

"We are fortunate to attract such an outstanding individual," said Leo Kohfleld, chairman of the board of Jackson Exchange Bank. "We welcome Cox's proven leadership qualities."

"I'm looking forward to my new duties here," said Cox Tuesday. "I've had an opportunity to meet and talk with the bank's staff and several directors. I am impressed."

First Exchange Corp.'s five subsidiary banks are operating under a cease-and-desist order of bank regulators. The order was issued in September, telling the corporation to halt insider loans, clean up its bad loans and boost its capital, from 4.5 percent to 7 percent.

"I'm aware of the situation," said Cox. "We do have same challenges here. We have one basic requirement to fill to get back to the business of banking within this community and renew our commitment to provide the finest quality of service our customers desire, demand and expect from us."

Cox said the corporation's current problems are not insurmountable.

"We have no big loss of customer base deposits," said Cox. "The core deposits remain stable. This is a tribute to the staff.

"Usually a negative such as the cease-and-desist order results in a draw down on deposits. "People here had to be giving good service.

"The main focus from regulators was the amount of insider loans," said Cox. "My assessment of the situation is that these loans are being reduced, and I see no conflicts."

Insider loans are legal for banks as long as they are reported and no favoritism is shown."

First Exchange Corp. is a multibank holding company headquartered in Cape Girardeau. It is presently ranked the 11th largest bank holding company in Missouri. Affiliate banks include Jackson Exchange Bank and Trust Co.; First Exchange Bank of Cape Girardeau; First Exchange Bank of Madison County in Fredericktown; First Exchange Bank of St. Louis and First Exchange Bank of North St. Louis County.

"President Gerald Ford once said that competition among banks is healthy for industry," said Cox. "Things are going to be healthy in Jackson and Cape Girardeau."