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HISTORY OF CAPAHA BANK

Cairo, Illinois Branch

The history of Capaha Bank’s Cairo Branch must begin with the history of the Tamms State Bank itself.  Capaha Bank began as the Tamms State Bank in November 1955 in Tamms, Illinois.  In the early 1950’s Tamms was a small but bustling community of around 700 population.  The town was home to some industry, most notably the switching yards operated by the Gulf, Mobile and Ohio Railroad; however, for the town to grow and prosper, local business leaders felt that a strong bank was needed. 

The banking connection between Tamms and Cairo began early as the Tamms business group reached an agreement with Barney Fisher of Cairo to help them start a bank in Tamms.  Fisher was then president of Security Bank and Trust Company in Cairo, the smaller of the two Cairo banks at that time, the other being First Bank and Trust Company.  Under the agreement Fisher would invest 51% of the capital needed to start the bank, and local Tamms investors would provide the other 49%.  The deal was struck, and in November 1955 the Tamms State Bank opened for business.

The Tamms/Cairo connection was continued as William F. (Bill) Eichoff came out from Cairo to become the bank’s first managing officer.  Eichoff ran the bank for eighteen years, retiring on December 31, 1973.  At the end of 1973 when Eichoff retired, the largest bank in Alexander County was First Bank and Trust Company in Cairo with $18 million in assets.  Security Bank and Trust Co. in Cairo was second with $10 million and the Tamms State Bank was a distant third at $4MM.  In neighboring Pulaski County, First State Bank of Mounds had $8 million in assets and was a definite factor in the local market. 

When Eichoff retired, he was replaced by John R. Abercrombie, a young man who had grown up in Tamms.  This move also supported the Tamms/Cairo connection as Abercrombie’s father, J. Reid Abercrombie, had been an active participant in local business and politics and had many friends and associates in Cairo.  John Abercrombie had no prior banking experience, but he brought an element of youth and energy to the bank that produced significant growth over the ensuing years.  By the end of 1981 the bank had grown to just over $12 million in assets. 

Unexpectedly, in 1982 the Illinois Commissioner of Banks announced the closing of Security Bank and Trust Co. in Cairo.  Bad loans had apparently been the cause of the bank’s demise, and its assets were acquired by First Bank and Trust Company, which made First Bank the only bank in Cairo.  This situation caused the board and management of Tamms State Bank to feel that a major opportunity had presented itself.  It was almost a certainty that the banking regulators would look favorably on the establishment of another bank in Cairo. 

To help the Tamms State Bank’s situation, banking laws in Illinois had been easing for several years in regard to the establishment of branches.  At this time (1982) an Illinois bank could establish banking “facilities” (not branches) in the bank’s own county or a contiguous county so long as the bank was no closer than one mile to the home office of another bank.  We did not consider this to be a problem, but during the application process, an unexpected problem occurred.

An automobile drive along Sycamore Street from the proposed facility location down to First Bank and Trust Co., suggests a distance as indicated on the car’s odometer of about 1.1 miles.  However, to comply with state banking regulations, the distance had to be surveyed and certified by a licensed surveyor.  The survey revealed that because the street curved, the actual distance “as the crow flies” was 140 feet less than the necessary mile.  The only way to get around this problem was if First Bank was willing to sign an irrevocable consent waiving the one-mile requirement.  First Bank and Trust Co. did grant the consent, the application was filed and approved, and the Cairo Facility opened for business on August 15, 1983. 

When the “facility” first opened, under Illinois banking law, it was a deposit facility only.  No loans could be made, and even safe deposit boxes were not allowed.  Because of a strange set of coincidences, by September 15, 1983, only one month after the facility had opened, Illinois banking law was changed to allow safe deposit boxes.  Within another month or so, the law was changed again to permit lending activities.  Within sixty to ninety days after the “facility” opened, its purpose and permissible business activities changed dramatically.  All of a sudden, it was a full service “branch”.  Because of the unique timing, the Cairo Branch may have been one of the very first full service branches in the state of Illinois.

The first manager of the Cairo “facility” was Salle (Coleman) Townsend.  Salle had begun her banking career at Security Bank and Trust Company in Cairo where she worked for William F. (Bill) Eichoff.  When Eichoff became the first managing officer of the new Tamms State Bank, Salle eventually followed him and worked at the Tamms location until her return to Cairo in August 1983. 

The new banking office was readily accepted by the community, and the bank grew from $13.4 million in assets to $16.7 million by the end of 1983, with much of this growth being contributed by the new Cairo branch.  The branch did so well in fact that in 1985 the building was doubled in size.  When the branch first opened, it was a modular unit 12 ft x 70 ft.  In 1985 an addition was built on the rear of the building, and wood siding was added to the outside of the structure to make it appear as a conventional bank building.

The branch continued to do well for the next several years as the bank grew to around $20 million in total assets, then in 1989 and 1990, several things occurred that would produce even stronger growth for the Cairo branch and for the bank as a whole.  Early in 1989 Pam Abercrombie moved from the main bank at Tamms to become the Branch Manager at Cairo.  Her goals were to get acquainted in the community and to build the bank’s business there.

In November 1989, the next major event that occurred was the announcement of an unexpected change in the management at First Bank and Trust Company.  Darrell Gustafson, a Cairo native and President of First Bank, had accepted a position at a bank in Hopkinsville, KY and would be leaving Cairo at the end of the year.   His departure would end a long history of local management of First Bank and Trust Co.

Also in November 1989, around the same time that Gustafson was relocating to Hopkinsville, Amy (Brinkmeyer) Farrow, who had been Gustafson’s assistant, joined the Tamms State Bank team as a loan officer.  Because of all the changes and the continued growth of the bank, the branch building was once again expanded in 1990.  The building that began as a 12 x 70 modular unit, with this expansion became a 2,500 sq. ft. fully equipped branch bank.  As we look at the building today, it’s hard to realize that that original modular unit is still in there somewhere.

The combination of the changing competitive environment, the addition of key new staff members, and the improvement of the branch’s physical facilities all combined to produce significant growth.  In 1990 the bank grew from $20 million in assets to $24 million, a 20% increase that was mostly attributable to new business at the Cairo Branch.

In 1995 another important change occurred.  The bank was planning an expansion into the Cape Girardeau market, and Pam Abercrombie was assigned to begin building relationships in Cape Girardeau and to help lay the groundwork for the eventual new branch.  In order to free her from her responsibilities at the Cairo Branch, Stephanie (Johnston) Gibson was hired in October 1995 to become the Cairo Branch Manager.

In February 1997 a historical change occurred at the bank.  The bank received its approval to open a branch in Cape Girardeau, MO, and the bank’s name was changed to Capaha Bank to reflect a more regional presence.  The next few years were very busy ones for the rapidly growing bank due to the growth and changes associated with the new Missouri branch.  With all of this, though, the bank’s Illinois branches were not forgotten.  In 2003 an extensive remodeling of the Cairo branch’s lobby, teller area and offices was completed.  Both the bank’s customers and staff were very pleased with the brighter and more open appearance of the bank’s lobby.

The growing bank presented its staff with many opportunities for career advancement.  In 2003 Stephanie Gibson moved to the Tamms location to become the bank’s Vice President and Compliance Officer.  She had been Regional Compliance Officer for the First National Bank of Davenport, IA and now had an opportunity to pursue her specialty in that area.  Succeeding Gibson as Cairo Branch Manager was Cairo native Amy (Brinkmeyer) Farrow.   Amy had been with the bank since November 1989 and would now have an opportunity to put both her banking experience and her familiarity with the Cairo community to excellent use.

Another major event in the history of the Cairo Branch occurred in March 2006 when Jay Manus joined Capaha Bank as Senior Vice President and Illinois Market Manager.  For the previous thirteen years Jay had been the Community President for the Cairo Branch of the First National Bank of Davenport, Iowa.  While Jay’s responsibilities would include the supervision of all three Illinois branches, his experience in and knowledge of the Cairo market would prove invaluable.  During his tenure with First National, Jay and Amy Farrow worked together on many committees and civic activities and formed a friendly but competitive alliance.  Once Jay joined Capaha Bank, this alliance began to produce major results. 

One result was the addition to the bank’s staff of Cairo native, John Brey in November 2006.  John, who was employed by Wood and Huston Bank in Cape Girardeau, had worked for Jay at First National some years earlier.  John was very excited about the opportunity to return to his hometown where he could pursue his banking career among his friends and neighbors and contribute his energy and talents to building a better and stronger community.  Earlier in November, prior to Brey coming on board, Amy Farrow was promoted to Vice President and Branch Manager in recognition of her dedication to the bank and her highly effective management of the branch. 

During the last week of November 2006 another milestone was reached.  The Cairo Branch established of its first ATM on Sycamore Street across from the branch.  The success of the new ATM exceeded everyone’s expectations as the community found the visibility and the ease of access of the new unit to be very convenient.  From the day it was activated, the Cairo Branch ATM became the bank’s highest performing ATM in terms of both number of transactions and dollar volume handled.  Needless to say, Amy, John, and Jay are all very proud of their new installation.

Much has changed in the last twenty five years, both in banking and in the city of Cairo, but one thing hasn’t changed, and that is Capaha Bank’s commitment to the people and the community of Cairo to be an active and effective corporate citizen and to deliver the very best in modern banking services to Cairo and the surrounding communities.

As Capaha Bank enters its twenty fifth year of service to the Cairo community, with Cairo deposits of $22 million and total bank assets in excess of $170 million, everyone at Capaha Bank is grateful for what the past has given and are excited about what the future promises for both the bank and the community.