SHAREHOLDERS FILE TO BUY CAPITAL BANK STOCK

Paul "Tony" Novelly, an executive with Clayton-based Apex Oil, and his children have filed to purchase additional Capital Bancorporation stock that would boost their ownership to 24.99 percent of total shares.

The Novellys, who already own 238,071 shares, or about 9.2 percent of the bank's stock, have filed an application with the Federal Reserve Board for permission to acquire up to an additional 15.74 percent of total shares.

The application indicates the Novellys would make stock purchases for investment purposes only and have no plans to change Capital's management or board of directors.

Under federal banking regulations, individuals or groups must obtain permission from bank regulators to acquire more than 10 percent of a bank company's stock. Additional permission would be required if the Novellys wanted to purchase 25 percent or more of the company's stock.

Capital Bancorporation Inc., headquartered in Cape Girardeau, is the holding company for six subsidiary banks: Capital Bank of Cape Girardeau County; Capital Bank of Sikeston; Capital Bank of Perryville; Capital Bank of Columbia; Capital Bank And Trust Co., Clayton; and Capital Bank of Southwest Missouri.

A Capital Bancorporation official said the Novellys are viewed as friendly shareholders.

"We consider Mr. Novelly to be a friend and supporter of the bank," said Van H. Puls, president and chief executive of Capital Bancorporation. "We have invited him to be on the board several times and he has always declined."

Novelly, president and chief executive officer of Apex Oil and president of Novelly-Goldstein Partnership, was a shareholder in Capital Bank of Clayton when it was purchased by Capital Bancorporation in 1989.

"We have a good relationship with him," said Puls. "We value this relationship very highly."

Puls said Novelly could obtain another 4 percent of the bank's stock by exercising warrants for stock purchases. The warrants involve 130,071 shares. Additional shares to put the Novellys ownership at 24.99 percent would have to be purchased on the open market.

Five trusts of the Novelly family filing for the stock purchases were created in February. Novelly and his four children each hold one of the trusts. They are: PAN-Bank Trust (Feb. 11); CNN-Bank Trust (Feb. 11); JJN-Bank Trust, Feb. 4; MDN-Bank Trust (Feb. 4); and Capital Trust (Feb. 4).

The trusts, individually, by and through the trustees -- William G. Lauber and Douglas D. Hommert -- filed in May for permission to purchase the additional stock.

A legal notice elsewhere in the Southeast Missourian today says the Federal Reserve Board considers a number of factors in deciding whether to approve the application, including the record of performance of banks owned by the trusts in helping to meet local credit needs.

The legal notice invites anyone to submit comments on the application in writing before June 21 to Federal Reserve Bank of St. Louis, P.O. Box 442, St. Louis, Mo. 63166.

Novelly and his family are already the largest holders of Capital Bancorporation stock. The next largest shareholders are St. Denis J. Vilere & Co. of New Orleans, La., with 7 percent ownership, and Earl H. Norman, chief executive of Cape Girardeau-based Health Service Corp. of America, who owns 5 percent. Norman is a director of the bank company.