The Stories That Shaped 2008, No. 10: Springfield banking competition intensifies

During 2008, the Missouri Division of Finance issued four new bank charters, one of which enabled the creation of Springfield's 30th bank.

A trio of local banking veterans - led by Brian Straughan, Jan Baumgartner and Kirk Bossert - filed a charter application in May, and Springfield First Community Bank opened for business Oct. 24.

"We want to keep Springfield first. We're going to participate with local banks, use local vendors and try to keep the wealth of Springfield in Springfield," Bossert told Springfield Business Journal in May.

The bankers lined up investors - Springfield's O'Reilly family among them - for a $22 million capital campaign to bring Springfield's newest bank to fruition.

The bank's temporary location is at 2006 S. Glenstone Ave., where a groundbreaking was held Dec. 16 for a permanent location, expected to be finished in late 2009.

Missouri Finance Commissioner Eric McClure said the state looks at capital, management team members and the business plan when reviewing a charter application.

That business plan, he said, must show profitability within three years.

Springfield First organizers have said their goal is to grow the bank's assets to $200 million within three years.

Springfield banking competition has intensified throughout 2008 as other banks expanded their regional footprints.

Arkansas-based Arvest Bank, which entered the market in 2006, opened its second Springfield branch Nov. 10, and a Hollister branch opened later that month.

The bank expects to open a third Springfield branch, at Chestnut Expressway and National Avenue, by the end of 2009.

By 2010, Arvest market President Mike Daw said he hopes to have nine branches in the Springfield market, which includes Branson, now home to two Arvest locations.

Nixa-based People's Bank of the Ozarks began construction of a second Springfield branch, expected to wrap up in the spring.

Springfield-based Guaranty Bank opened its 10th area branch in Nixa on Aug. 10 and has plans to open a Springfield operations center by year's end while Metropolitan National Bank added a 25,322-square-foot Springfield operations center.

Commissioner McClure said the Ozarks' history as a growing and diverse market is a draw for financial institutions.

A Dec. 5 conditions report on Missouri's 293 state-chartered banks and trust companies shows strong capital positions overall.

Though net income in state banks was down 54.9 percent for the first nine months of 2008 and return on assets was 0.42 percent - less than half of the 1.04 percent for the same period in 2007 - assets in state-chartered banks were up 11.8 percent from a year ago to $74.8 billion as of Sept. 30. Deposits grew 10 percent to $58.9 billion, and total loans climbed 10 percent to $54.9 billion, according to the report.

"There are some challenges, but overall, the big picture is good as far as the safety and soundness of our banks," McClure said. "They continue to lend money ... so if you put your money in a state-chartered bank, that money is loaned back to the community."