A Kansas City, Missouri bank has failed and is now under the control of a bank in Kansas.
An offficial with the Missouri Division of Finance, which accepted possession of First Bank of Kansas City, says the bank’s demise was due to poor risk selection and aggressive lending practices of prior management, resulting in substantial investment in high-risk loans which were more than the bank could support.
The Division accepted possession of the bank, the Federal Deposit Insurance Corporation was appointed as receiver, and the bank was then sold to Great American Bank of DeSoto, Kansas.
Assets of the bank totaled $15.1 million as of August 31st. Customers will automatically become customers of Great American Bank with their deposits insured by the FDIC.