A shareholder who opposed the sale of First American Bancshares in Kansas City, Kan., is moving quickly to start a competing bank.
David Spehar, the former president of a First American subsidiary, filed an application with state regulators last month to open an institution called First American Bank.
Mr. Spehar was one of several shareholders who opposed the sale of First American Bancshares' four banks to Dickinson Financial Corp. for $23.5 million in early October.
Mr. Spehar, who had been president of Wyandotte Bank, left the company at the end of September and submitted the new bank application on Oct. 3. The state bank commissioner's office is scheduled to act on the matter on Nov. 21. Mr. Spehar hopes to open the bank next month.
Jerry Swords, president of Swords Associates Inc., a Kansas City, Mo., consulting firm, called the situation unusual. Because the buyers didn't deal with management, there was no noncompete clause to prevent an immediate start-up.
"It's to their advantage to get the bank under way as quickly as possible," Mr. Swords said.
The new bank is being capitalized with $5 million in cash. In addition, Mr. Spehar has hired away a number of employees from Wyandotte. He said he didn't approach employees about joining him until after he resigned.
Last month, investors in the new bank bought a former thrift office about a block form Wyandotte's location in western Kansas City, Kan., Mr. Spehar said.
Mr. Spehar said the new bank will focus on small-business and construction lending and mortgage banking.
Mr. Spehar, who is slated to be president projects $28 million of assets by the end of 1995 and he anticipates an annual growth rate of 8% going forward.
The idea for First American Bank sprung to life after the outside majority shareholders of First American Bancshares sold to Dickinson because some were headed for retirement and some needed money. Mr. Spehar said.
But he and other stockholders thought the price could have been better. Mr. Spehar believes that more banks will be acquired in the area and if First American had held out longer, it could have commanded a higher price.
In addition, the cash deal did not offer shareholders the tax benefits of a stock exchange, Mr. Spehar said. Gary Dickinson owns all of Dickinson Financial, he said.