Former BancorpSouth execs apply for bank charter

If the Missouri Division of Finance approves the charter application filed by the group Wednesday, Springfield First Community Bank should open its doors later this year. The main branch would be built at 2006 S. Glenstone Ave., the site of Merigold Inn. Organizers have the 2.7-acre property under contract for about $2 million, according to the application.

The proposed bank’s management team consists of six executives with ties to either The Signature Bank or BancorpSouth, which merged last year. After the $170 million deal closed, Tupelo, Miss.-based BancorpSouth assumed control of Signature’s six Springfield branches and a loan production office near St. Louis.

Brian Straughan, Jan Baumgartner and Kirk Bossert – all of whom left BancorpSouth earlier this year – are the top executives at Springfield First. Straughan is president and CEO; Baumgartner is executive vice president; and Bossert will serve as chief financial officer.

“We want to keep Springfield first,” Bossert said. “We’re going to participate with local banks, use local vendors and try and keep the wealth of Springfield in Springfield.”

The trio said that the proposed bank’s holding company, Springfield Bancshares Inc., has raised $2.4 million in seed money and another $20 million in escrowed bank capital. Bank investors include Charlie O’Reilly – and the entire O’Reilly family – and Realtor Larry Lipscomb. O’Reilly, Lipscomb and other founding board members also have connections to The Bank or Signature Bank, which merged in 2004 before Signature was sold to BancorpSouth.

Attempts to reach BancorpSouth officials for comment about the formation of Springfield First were unsuccessful. President Rob Fulp was out of town, and CEO Dave Kunze did not immediately return calls.

Bank investors emphasized that Springfield First would be a locally owned bank controlled by Springfield businesspeople. To that end, they’ve established the bank as an S corporation, which limits the number of shareholders to 100. Their goal is to grow the bank’s assets to $200 million in three years and keep it at that size.

The charter application will undergo state and federal scrutiny for the next three to four months. The proposed bank’s profitability plan and its impact on existing competitors are among the factors that will be considered by the state Division of Finance and Federal Deposit Insurance Corp.

Bossert said the bank organizers are hoping to hear back from the state sooner than later.

“We’re very anxious,” he said. “We know how to do a bank.”

See SBJ’s May 26 issue for more about the specifics of the proposed community bank.

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