September 5, 2009

First Bank of Kansas City acquired by Great American Bank, Desoto, Kan.

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Jefferson City, Mo. - The Missouri Division of Finance today accepted possession of First Bank of Kansas City, based in Kansas City, Mo. The Federal Deposit Insurance Corporation (FDIC) was immediately appointed as receiver of the bank, which was then sold in its entirety to Great American Bank of DeSoto, Kan.

Lobby services at the bank's sole location, 3901 Main Street, will resume on Tuesday, Sept. 8th, after the Labor Day holiday, and drive-up services will resume tomorrow, Saturday, Sept. 5th, at 9:00 a.m. Depositors of First Bank of Kansas City will automatically become depositors of Great American Bank and will continue to have full access to their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed and loan customers should continue to make their payments as usual. Depositors will continue to be insured by the FDIC and there will be no interruption of service to customers of the former First Bank of Kansas City. 

"This is the only failure of a state-chartered bank in Missouri this year," said Richard J. Weaver, commissioner of the Division of Finance. "The demise of this bank was due to poor risk selection and aggressive lending practices of prior management, resulting in substantial investment in high-risk loans. Many of these loans proved uncollectible and the losses were more than the bank could support."

Weaver said despite the best efforts of ownership and management, additional capital could not be procured nor a sale consummated. As a result, the bank's board of directors voted to turn the bank over to the Missouri Division of Finance as allowed by state law. Assets of the bank totaled $15.1 million as of Aug. 31, 2009.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-430-6165.  The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT.  Interested parties can also visit the FDIC's Web site.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

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