Regulators on Friday closed a bank in Howard County. Glasgow Savings Bank was shut down by the Missouri Division of Finance. Regional Missouri Bank of Marceline has agreed to take over the failed financial institution as part of a purchase-and-assumption deal with the Federal Deposit Insurance Corporation (FDIC).
Glasgow Savings had about $22 million in total assets as of June 30. Regional Missouri agreed to acquire all of the failed bank’s deposits and assets. The FDIC estimates that the cost of the bank failure to the Deposit Insurance Fund will reach $100,000.
“The demise of this bank is the result of aggressive lending decisions concentrated in out-of-territory participation. Many of these loans became delinquent and non-performing. Losses have been realized and are more than the bank can support,” Richard Weaver, the Commissioner of the Division of Finance said in a statement released Friday.
Attempts to sell the bank or obtain additional capital were not successful, and the bank’s board of directors voted to turn it over to the Missouri Division of Finance, which is required by state law “when a bank is in failing condition.” Depositors of the failed bank will automatically become customers of Regional Missouri and transactions will continue to be insured by the FDIC.
For more information call the FDIC toll free at 1-800-822-1918. The phone number will be operational on Saturday from 9:00 a.m. to 6:00 p.m.; on Sunday from noon to 6:00 p.m.; on Monday from 8:00 a.m. to 8:00 p.m. and thereafter from 9:00 a.m. to 5:00 p.m.