As Printed in the Lee's Summit Journal
Matt Bird-Meyer
Lee's Summit certainly does not have a shortage of banks, but the new Summit Bank of Kansas City at least has a unique story to tell.
For one thing, there are no other Summit Bank locations anywhere. That's because Rick Viar of Lee's Summit, formerly of Gold Bank, and approximately 240 local investors are starting from scratch.
The group recently filed its bank application with the Federal Reserve, Missouri Division of Finance and FDIC. The regulators are now reviewing the bank's application.
Summit Bank currently keeps a temporary office in one of the three class-A office buildings inside the Rollins Meadows office park at Interstate 470 and Douglas Street. Pending regulatory approval, Viar said the bank plans to relocate into the adjacent office building, consuming most of the ground floor with the option to occupy the entire floor.
Eric McClure, state bank commissioner with the Missouri Division of Finance, characterized the Summit Bank application as "unusual." Missouri does not allow out-of-state bank branches or new bank charters affiliated with out-of-state holding companies to open new locations in the state.
Summit Bank is backed by Capitol Bancorp Limited of Lansing, Mich., a $3.3 billion community bank development company. So, in order to set up shop in Missouri, Summit Bank had to purchase an existing bank charter that has been in business at least five years.
Viar said his group bought out a small bank in Southeast Missouri, one that has been in existence since the early 1900s.
"We could be the newest bank with the oldest charter," Viar said.
What also makes Summit Bank unique is its local ties. Viar, bank president, said the group may be tied to Capitol Bancorp, but the corporation's model is one of local autonomy and control.
"We are one of very few with a local board of directors that has interests in Lee's Summit and Eastern Jackson County and knowledge of Eastern Jackson County," Viar said. "Every other bank is technically a branch of a holding company that does not have empowered leadership."
In fact, the bank's board members read like a who's who of Lee's Summit and Eastern Jackson County. Some of the Lee's Summit names include Jack Accurso of American Foodservice Company, Carl Chinnery of Chinnery, Evans & Nail, Will Coates of Billy Goat Industries, Roger Fender of Fender Family Dentistry, Kurt Pycior of Froehlich Pycior Companies, Steven Silverstein of Silverstein Eye Centers and Diane Seif of PRA International, formerly RxCCI.
The remaining board members include Robert F. Glaser of the Residences of Kirkwood, Harlan Limpus of Winterstone Golf Course, Joseph D. Reid of Capitol Bancorp, Stan Ricketts of Capitol Bancorp, and Carson Ross, retired former state representative.
In addition to purchasing an existing state chartered bank, McClure said a new bank has to raise capital to invest in the bank, draft a viable business plan to show profitability and ensure the state the new bank will not run another bank into the ground.
Viar said Summit Bank met its capital goal of $8 million in about 34 days, accepting contributions as low as $1,000 from investors and up to $150,000. Capitol Bancorp controls 51 percent of the Summit Bank stock.
Viar said Capitol Bancorp may have majority control, but the holding company's model clearly calls for establishing community banks that have local control. Capitol Bancorp, which has about 38 other banks, will mostly provide backroom support, such as human resources, bank compliance and marketing, Viar said.
"The process works so well because Capitol stays back and lets the bankers have total authority to be our community's bank," Viar said.
With such flexible local control, Viar is making it bank policy that his managers become active in the community. And not only active, but involved as members in leadership roles.
"If we bring leadership to the community, that brings the bank more credibility," Viar said.
Viar is a member of the Lee’s Summit Chamber of Commerce board, is on the Lee's Summit Economic Development Council Advisory Board and is a board member with ReDiscover in Lee's Summit.
Viar said the bank is currently 50 percent staffed and is looking to hire tellers, personal bankers and lending officers. Once refurbished, the new bank office will have a drive-through lane equipped with a two-way television screen to allow customers to interact with tellers inside. It also will have an ATM machine and a night deposit box.
Viar said Summit Bank will focus primarily on small-business services with a full array of business products and retail services. Its legal loan limit could be between $1 million and $1.5 million, he said.
And in three to five years, Viar said he expects the bank to plateau at $150 million in total assets. Also in that time, he said Capitol Bancorp is expected to open three to five new community banks in the Kansas City market. Summit Bank is the first Missouri location for the holding company.
When asked why Lee's Summit was selected, Viar said key leadership is in place at a time of high growth and sophistication in the city.
"Everything is in line for Lee’s Summit to be the next big deal," he said.
Although Summit Bank is the first new Missouri location for Capitol Bancorp, it is not the first new bank application for the state this year. It is the second of up to 10 applications expected this year, McClure said.
"This could be a record year," he said.
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