Business Spotlight: State Bank will expand its personalized services

If you venture into the lobby of State Bank of Southwest Missouri, you won't have to wait long before an employee will ask if he or she can help you. According to Thomas Fowler Jr., president and chief executive officer, prompt, personal service is the primary reason most customers choose to do business with this small, local bank.

In 1985, Fowler left his position as president of United Missouri Bank (now UMB) to found a new bank. A few months later, he had lined up 19 investors and the $1.1 million needed to charter the State Bank of Southwest Missouri, which is FDIC insured.

"The small-banking philosophy of giving great service is something people wanted and needed in Springfield," Fowler said. "I think that's one of the reasons smaller banks are popping up all over town. A small bank appeals to people who are interested more in service than multiple locations."

State Bank of Southwest Missouri never has advertised its services, according to Fowler. Instead the bank relies on word-of-mouth and the high visibility provided by its location, near the intersection of East Sunshine and Highway 65 to gain customers. In fact, almost all of the bank's customers live in the surrounding neighborhood or commute to their jobs via East Sunshine.

The bank offers a wide variety of traditional banking services, such as checking and savings accounts, debit and ATM cards, credit cards, certificates of deposit, IRAs and safety deposit boxes. The bank makes a wide variety of other loans, such as automobile loans, signature loans and small-business loans. The bulk of its business, however, comes from residential and commercial real estate loans.

According to Fowler, the number of residential and commercial real estate loans made in the Springfield area has increased significantly in the past 15 years. This increase is reflected in the bank's year-end financial statements. In 1987, two years after opening, State Bank of Southwest Missouri had $10.48 million in loans. By 1989, the amount of loans had nearly doubled.

Fiscal growth led to physical expansion, and in 1990, the bank tripled the size of its building. The number of loans made each year continued to increase, as did the size of the staff. By 1999, the bank had 21 employees and made $54.45 million in loans for the year.

"Banking has changed tremendously in the past few years," Fowler said. "You can get on the Internet and shop for a home loan, a car loan or just about anything else. But filling out some standard loan application online doesn't take into account your total financial picture."

The process of applying for a loan has changed dramatically in recent years. In fact, Fowler believes many of the new loan regulations provide little benefit to consumers because they make the loan process harder to understand.

"When you apply for a loan, you need someone who can explain what options are available to you," Fowler added. "You need to sit down with somebody who can tell you how to get what you want. The people who work here are trained to help you reach your financial goal, whether it's a new home loan or a new car. Our loan officers look at everything, and they try to get you the deal that will fit best into your overall financial picture."

Other regulations also have had an effect on the banking industry. For example, it's now much harder to start a new bank. In fact, Fowler said, if he went out today and tried to start a new bank, he would need to raise $3 million to $6 million from investors rather than the $1.1 million needed in 1985.

Still, the number of small banks in Springfield is increasing, which has created more competition.

"The banking industry is continuing to change," Fowler said. "You don't see many mid-sized banks anymore. You have large banks, which appeal to consumers interested in the convenience provided by multiple locations and ATMs, and you have small banks, which appeal to people who are more interested in personalized customer service."

To stay competitive, Fowler has made plans to increase the scope of personalized services offered by State Bank of Southwest Missouri. Some of these services include help with retirement planning, financial planning and learning how to invest in mutual funds.

In addition to these personal services, the bank is working with Internet specialists to develop a Web site. The new Web site will allow customers to view their account balances, transfer money between accounts and pay bills online.

State Bank of Southwest Missouri

Year founded: 1985

Owner's name: State Bank of Southwest Missouri Inc.

Address and phone number: 3310 E. Sunshine, Springfield, Mo. 65804; 882-1400