Top execs at bank leaving to open new facility

MAYOR'S NEW JOB

By Scott Moyers ~ Southeast Missourian

Steve Taylor and Jay Knudtson have left their top executive positions at Bank of America to help start a new bank in Cape Girardeau, a move they say will enable them to get away from the specialized world of mega-banking and back to their roots of community-style finance.

The men have agreed with the owners of First Missouri State Bank, which has four banks including one in Southeast Missouri, to open a branch here.

That's a stark contrast from Bank of America, which has clients around the globe. But Taylor, who will assume the title of local bank president, and Knudtson, who will be executive vice president, said that's exactly the point.

"When we were approached, I saw it as an opportunity to get back to the more community-type banking," Taylor said. "It was something I think we both had been missing for some time."

Taylor and Knudtson are now in the position of having to compete for business against their soon-to-be-former employer. Taylor points out that 60 percent of the entire Cape Girardeau banking market is in the three big banks -- Bank of America, Union Planters and US Bank, roughly about $600 million.

He believes some of those customers are yearning for more personal, one-on-one banking.

"People want a service level and a relationship that some larger banks aren't in a position to provide," he said. "We will be."

Knudtson said what they do on a daily basis for Bank of America is highly specialized, primarily dealing with clients looking for at least $1 million loans.

"When somebody comes wanting $250,000 for a convenience store, I'd have to send them to someone else," said Knudtson, who is also Cape Girardeau's mayor. "There was no disenchantment with Bank of America, but we wanted to get back to working with the community."

Taylor said he expects the bank to open by early to mid-November. First Missouri State Bank has signed a letter of intent to lease the existing Bank of America location at the corner ofIndependence Street and Mt. Auburn Road. Bank of America had planned to close that branch by Sept. 30. The property is owned by the Zimmer Radio Group.

Taylor, a Cape Girardeau native, has been market president for Bank of America and has 20 years of banking experience. He has also worked with Bank One and its predecessors in Dallas. Knudtson, who is senior vice president, has been with Bank of America for 13 years since he moved here from Minnesota.

Taylor and Knudtson have agreed to stay with Bank of America through August to help with the transition.

"We're disappointed that they've chosen to leave the bank," said Diane Wagner, a spokeswoman for Bank of America. "It's sounds like a great opportunity for both Steve and Jay. It takes top talent for some of these opportunities and we wish them well."

She said she couldn't speak to their comments about wanting to return to a more community-style of banking.

"It doesn't change our commitment to our clients in Cape Girardeau," she said. "We still have associates who are part of the community there and we're going to maintain our presence."

Officials with First Missouri State Bank said they were thrilled to have the two men at the helm of their new branch.

"As we begin the process of establishing a banking presence in the Cape Girardeau area, it was paramount that we identified people who live and work in the community to lead our team," said Larry Potter, president of the main bank in Poplar Bluff. "It is our philosophy that local people make a community bank strong."

The banks are owned by the Gaylon Lawrence family. In addition to the banks, Lawrence owns a substantial amount of agricultural property in Southeast Missouri and in Arkansas.

Gaylon Lawrence Jr. said he was excited to be expanding to Cape Girardeau and to be aligning himself with Taylor and Knudtson.

"They are proven leaders in the community and they have made the type of commitment to the community that help build customer loyalty," he said. "We believe in relationship banking."

smoyers@semissourian.com

335-6611, extension 137

CAPE GIRARDEAU BANKING HISTORY

First National Bank became Centerre. Farmers and Merchants Bank became Boatmen's Bank. Boatmen's then bought out Centerre before Boatmen's became Nation's Bank. Nation's Bank then became Bank of America.

Cape State Bank became Mercantile before becoming Firstar. Firstar recently became US Bank.

Bank of Missouri was created when the Bank of Perryville opened its location in Cape Girardeau.

Capaha Bank was created when Tamms State Bank in Tamms, Ill., opened a bank in Cape Girardeau. It then became Capaha Bank.

Commerce Bank started from the remnants of First Exchange Bank failure.

First National Bank, headquartered in Sikeston, opened a branch here.

Alliance Bank is a bank chartered in Cape Girardeau and started here in 1997.

Before becoming Union Planters Bank, it was Capital Bank, which had been made up of Cape County Bank and First Federal Savings and Loan.

Though it was always owned by Wood & Huston Bank, Wood & Huston started out in Cape Girardeau as SEMO Bank. Then, about four years ago, it changed its name to Wood & Huston.