Glasgow Savings Bank, Glasgow, Missouri, the oldest bank in the state, was closed down today by the Missouri Division of Finance. The FDIC, appointed as receiver, sold the failed bank to Regional Missouri Bank, Marceline, Missouri.
Glasgow Savings Bank opened in April 1852. Despite a 160 year history of operations, the bank remained very small and at March 31, 2012, had only $24.8 million in assets. According to the Bank’s website, some of Glasgow’s present day shareholders are descendants of the original founders. Gregg Bancshares, Inc. operates as the holding company for Glasgow Savings Bank.
Glasgow Savings Bank had only one branch which will reopen on Saturday as a branch of Regional Missouri Bank. All depositors of the failed bank will automatically become depositors of Regional Missouri with full FDIC deposit insurance coverage up to the applicable limits. Depositors of Glasgow Savings Bank will have access to their money over the weekend through the use of checks, debit cards and ATM.
At March 31, 2012, Glasgow Savings Bank had total assets of $24.8 million and total deposits of $24.2 million. Regional Missouri Bank agreed to purchase all assets of failed Glasgow along with assuming all deposits. During February 2009, Glasgow received $825,000 from the U.S. Treasury under the TARP program of which the full amount remained unpaid through today’s closing of Glasgow Savings Bank.
Regional Missouri Bank was established in May 1908, is profitable and has over $135 million in assets. This was the first acquisition of a failed bank by Regional Missouri Bank.
The cost to the FDIC to close Glasgow Savings Bank is estimated at $100,000. Glasgow Savings becomes the 33rd banking failure this year and the first in Missouri.
The number of banking failures has declined substantially since 2010. During 2010, regulators closed 157 banks, the most since 1992 when 181 banks failed.
Counting today’s bank failure, a total of 447 banks have failed since the financial crisis began in 2008. The FDIC optimistically projects that the cost of banking failures through 2016 at $12 billion. The estimated cost to the FDIC Deposit Insurance Fund for the 414 banking failures that occurred from 2008 through 2011 is $88 billion.