GROUP PETITIONS FOR NEW CAPE BANK

CAPE GIRARDEAU -- The First National Bank of Sikeston has purchased the former Colonial Federal Savings and Loan building at 2027 Broadway here.

"We have also filed an application for a full-service banking operation at the Cape Girardeau location," said Michael L. Bohannon, vice president of First National Bank.

The bank's legal notice of application with the Comptroller of Currency for permission to established a domestic branch at Cape Girardeau appears elsewhere in today's Missourian.

"We have planned extensive renovations and remodeling of the banking portion of the old Colonial building," said Bohannon. "Pending regulatory approval, we'd like to open the facility for deposits this summer."

First National already has a mortgage loan origination office in Cape Girardeau, on Broadview.

"We will be moving the mortgage loan service to the Colonial building May 1," said Bohannon.

This marks the second transaction with the Resolution Trust Corporation (RTC) for First National.

The RTC approved the sale of Colonial Savings deposits and assets from the Chaffee and Caruthersville branches to First National in November.

Colonial Savings and Loan Association operated more than 100 years before the institution joined a growing list of financially-troubled savings and loan facilities that were taken over by the RTC in 1990.

In early November, the RTC approved the sale of Colonial deposits and assets. Mercantile Bank of Cape Girardeau acquired deposits of about $81.6 million from the Cape Girardeau operation, and First National Bank acquired deposits of approximately $36.7 million from branches at Chaffee and Caruthersville.

The building was not disposed of during that transaction.

First National Bank, which now has operations at Chaffee, Caruthersville and three locations in Sikeston, announced last week that it would construct a new, 55,000-square-foot bank building in Sikeston.

Troy Wilson, president of the bank, said about 30,000 square feet of the new building would be used for banking operations, with 25,000 square feet to be available for lease.

"We'll probably lease some of the space at the building in Cape Girardeau," said Bohannon. "That building is a large one."

First National Bank is in its fourth decade of operation. It opened in 1955 as Planter's Bank, located on West Malone Ave. In 1964, the bank's name was changed to First National Bank, and the bank relocated to its present location at 210 South Kingshighway in Sikeston.

With its acquisition of Chaffee and Caruthersville deposits last year, the bank is the largest in Scott County with assets currently in excess of $136 million.

"We're currently serving three communities," said Bohannon. "We certainly look forward to becoming a permanent part of the Cape Girardeau community, and we look forward to a long relationship."

Cape Girardeau already has six banks including: Boatmen's Bank, Southeast Missouri Bank, Mercantile Bank of Cape Girardeau, Exchange Bank, AmeriFirst Bank, and Capital Bank; and two savings and loans.