July 13, 2012
Glasgow Savings Bank acquired by Regional Missouri Bank, Marceline
Jefferson City, Mo. - The Missouri Division of Finance today accepted possession of Glasgow Savings Bank, Glasgow, and appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. To protect depositors, an agreement to acquire the bank was reached with Regional Missouri Bank, a $133 million state-chartered bank headquartered in Marceline.
Depositors of Glasgow Savings automatically become depositors of Regional Missouri Bank, and continue to have full access to their accounts by writing checks and using their ATM cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
Depositors will continue to be fully insured by the FDIC. Normal operating hours for lobby or drive-up services for former Glasgow Savings customers will resume on Saturday.
"There will be no interruption of services for customers of the former Glasgow Savings Bank," said Richard J. Weaver, Commissioner of the Division of Finance. "The demise of this bank is the result of aggressive lending decisions concentrated in out-of-territory participations. Many of these loans became delinquent and non-performing. Losses have been realized and are more than the bank can support. The bank has operated under close regulatory scrutiny since 2009."
Attempts to sell the bank or obtain additional capital were not successful, and as a result, the bank's board of directors voted to turn the bank over to the Missouri Division of Finance, as required by state law when a bank is in failing condition. Assets of the bank totaled $22 million as of June 30.
Customers who have questions about today's transaction can call the FDIC toll free at 1-800-822-1918. The phone number will be operational this evening until 9; on Saturday from 9 a.m. to 6 p.m.; on Sunday from noon to 6 p.m.; on Monday from 8 a.m. to 8 p.m. and thereafter from 9 a.m. to 5 p.m.
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.