WHITLER TAKES OVER AS PRESIDENT, CEO OF FIRST EXCHANGE

E. Lee Whitler has replaced Don Chilton as president and chief executive officer of the First Exchange Corporation of Cape Girardeau.

In a letter to stockholders dated July 31, Whitler said he would hold the post on an interim basis until until a permanent successor is named.

The former bank president and CEO, Donald R. Chilton of Jackson, reportedly resigned to devote his time to a family business.

Whitler was formerly vice president and chief executive officer with the corporation. He started 10 years ago with Jackson Exchange Bank. He was not available for comment, and no one else with the corporation would comment about the change in leadership.

Chilton was also a member of the board of directors at the company's First Exchange Bank of St. Louis in south St. Louis County. That bank has had a five-fold increase in problem loans in its first quarter and lost $109,000, according to a recent article in the St. Louis Business Journal.

The article said the Cape Girardeau-based bank holding company's non-performing assets, which includes foreclosed property and problem loans, increased to $3.3 million in December, 1990 from $657,000 a year ago.

The letter to stockholders does not say whether Chilton's resignation is tied to the lower profits of the company and increase in non-performing assets. The letter also said the corporation decided to defer payment of July dividends as it continues to build capital and reserves for loan losses, according to the article.

The holding company's income dropped drastically from $3.2 million in December 1989 to $1 million at the end of 1990. As a result, the return on average assets dropped from .88 percent to .23 percent. The South County bank's return on average assets in December 1990 dropped to .14 percent, according to figures in the article from Sheshunoff Information Services Inc. of Texas, which compiles bank data nationwide.

First Exchange Corp. is one of Missouri's largest bank holding companies, with deposits of $455 million. Chilton owns 4 percent of the corporation's stock, according to the Journal article.

Information on the corporation and the bank is somewhat limited since its stock is not traded over the counter.

Chilton is now working with Quality Business Accessories Inc. of Fenton. He could not be reached at that office. That company is owned by his brother Bill Chilton of St. Louis. In 1989, Bill Chilton was appointed to the holding company's board of directors and at that time was an advisory director for the First Exchange Bank of St. Louis.

Don Chilton has moved from his Jackson residence.

The Missouri Division of Finance completed an audit of the bank holding company two weeks ago. The division's headquarters in Jefferson City could not confirm when initial or final reports would be available.

Leo Kohlfeld of Cape Girardeau has been chosen as interim chairman of the corporation's board of directors. He also has served on the board of directors of the South County Bank as well as other banks held by First Exchange.

Kohlfeld said the corporation has a search committee looking for a replacement for Chilton. The team is exploring inside and outside the corporation.

Kohlfeld said a high rate of problem loans is a "sign of the times" in the banking industry now and is much more prevalent now.

He would not confirm information that First Exchange loaned $10 million dollars to Mason Homes of St. Louis and that $1 million of collateral was stock in Germania Bank, which was taken over by the federal government. Mason has experienced serious financial difficulties and its creditors have been calling for payments.

The South County bank sued in April to recover more than $1 million in foreclosure on property in north St. Louis. According to Journal, the suit alleges the former owners of the property still owe the bank the remaining amount of the loan to buy the property.

The affiliate banks of First Exchange Corp., beside the First Exchange Bank of St. Louis, are Jackson Exchange Bank and Trust in Jackson, First Exchange Bank of Madison County in Fredericktown, First Exchange Bank of Cape Girardeau and First Exchange Bank of North St. Louis County in Florissant.