The Missouri Division of Finance, on Friday, accepted possession of Glasgow Savings Bank (of Glasgow), and appointed the FDIC as receiver. To protect depositors, an agreement to acquire the bank was reached with Regional Missouri Bank, a 133 million dollar state-chartered bank based out of Marceline.
Depositors of Glasgow Savings automatically have become depositors of Regional Missouri, and will continue to have full access to their accounts by writing checks and using their ATM cars. 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 and drive-up services for former Glasgow Savings customers will resume today (Saturday).
Richard Weaver, the Commissioner of the Division of Finance, said there will be NO INTERRUPTION of services for customers of the former Glasgow Savings Bank. He explained the demise of the bank came from the result of aggressive lending decisions concentrated on "out-of-territory participations". Many of these loans became delinquent and non-performing. Losses were realized and became more than the bank could support. The bank 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 $22,000,000 as of June 30th.