Federal and state regulators said Friday that they have shut down the $18.7 million-asset Hume Bank in Missouri, the second bank to fail this year.
Hume Bank was closed as a "direct result of alleged improprieties by former bank management, which resulted in past due loans not being reported and the true condition of the bank being misrepresented," D. Eric McClure, Missouri's commissioner of finance, said in a press release.
"Most of these loans were poorly conceived and inadequately serviced, resulting in losses which exhausted the bank's capital and ultimately resulted in its failure," he said.
Security Bank, a Rich Hill unit of Bates County Bancshares Inc., purchased Hume's $12.5 million of insured deposits. The Federal Deposit Insurance Corp. said the failed bank's sole office will reopen today as a Security Bank branch. When it was closed Hume Bank had about $1.1 million in 33 accounts that exceeded the deposit insurance limit.
