Nevada County Picayune and Gurdon Times Newspaper Archive

Mercantile Is First Star Bank

Customers of Mercantile Bank need to understand something the bank doesn't technically exist.

Michael Meadors, an investment banker with First Star, the banking corporation that bought Mercantile, said Mercantile is technically First Star already as no Mercantile stock has been publicly traded since September.

However, he pointed out, it will be the middle of next year before any physical changes are made at the bank.

Meadors, speaking to the Gurdon Rotary Club, said Mercantile's name will become First Star. This banking corporation is headquartered in Milwaukee, Wisc., and is one of the top 15 in the nation. Its assets, he informed the Rotarians, are a combined $75 billion.

He said First Star is also one of the best stocks a person could buy, based on the returns in public trading.

Meadors, though, does investment banking and helps clients with their investment portfolios. His job includes working with stocks, bonds, mutual funds, brokering certificates of deposit and estate planning.

"I can do a full range of investments," he said.

The important thing for people to remember when investing, he told the club, is time in the market, not timing. He suggested potential investors leave their money in the market longer to take advantage of fluctuations and see how their stocks will perform over the long haul instead of using guerilla tactics with quick trades.

At this time, he said, the market is good, with the money market average as good as it's been in years.

He suggested anyone interested in becoming involved in the market, or wanting to build a portfolio, test their risk tolerance and start with mutual funds.

However, he said, it is a good idea to use extra money when starting out. Younger investors, Meadors suggested, would be wise to invest in growth funds, as they have more time to leave their money in the market.

Currently, he said, First Star is number one in financial bank stock services and has been for the last five years based on growth and shareholder returns.

"First Star has been a model of growth by acquisition," he informed the club.

Once Mercantile formally becomes First Star in Gurdon, he said, a "super" ATM machine could be installed. This ATM will allow customers to buy postage stamps and get their bank statements, along with the other functions ATMs perform.

But, he said, it is not known whether or not there will be a charge for using the machine.

The company, Meadors said, is sales oriented and the changes made locally should be positive. He added the bank is also community oriented and should get involved in local activities.