twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



160-Year-Old Bank Fails

Glasgow Savings Bank closed by state bank regulator

July 14, 2012

By MortgageDaily.com staff


A Missouri bank that survived the Civil War and made it through the Great Depression was unable to withstand the Great Recession.

A consent order issued on May 26, 2010, by the Federal Deposit Insurance Corp. required that management at Glasgow Savings Bank restore the bank to a safe and sound condition. The restoration included capital adequacy, asset quality and earnings as well as management effectiveness, liquidity and market risk sensitivity.

The order required that qualified management be put in place within 90 days, "including an appropriate number and type of senior officers with the requisite knowledge, skills, ability, and experience, giving consideration to the size and complexity of the bank, to operate the bank in a safe and sound manner, and in compliance with applicable laws and regulations."

In addition, the Glasgow, Mo., bank was required to reclassify some of its bad assets, refrain from extending more credit to marginal borrowers and reduce loan concentration.

An Oct. 5, 2010, written agreement between the Federal Reserve Bank of Kansas City, Glasgow parent Gregg Bancshares Inc. and chief executive officer Jenny Gregg required the conservation of capital.

But the seven-employee firm apparently failed to meet the requirements of the regulatory orders.

On Friday, the Missouri Division of Finance took possession of the financial institution and closed it down.

"The demise of this bank is the result of aggressive lending decisions concentrated in out-of-territory participations," the state said. "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."

The division noted that the 160-year-old bank had no luck trying to find a buyer or raise capital, so the board of directors voted to turn the bank over to the state.

The FDIC, which was named receiver, conducted a secret bidding process and awarded the winning bid to Regional Missouri Bank. The deal calls for Regional to assume all of the failed bank's $24 million in deposits and acquire all of its $25 million in assets including $3 million in residential loans, $3 million in commercial mortgages and $1 million in construction-and-land-development loans.

Only $0.1 million in related losses are expected for the Deposit Insurance Fund as a result of Glasgow's failure, the 33rd so far this year.

Mortgage Daily has tracked the closing or failure of 55 mortgage-related businesses so far during 2012.

next story

back to current headlines


Bank news

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.

www.mortgagebranchmanagerjobs.com
Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders