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Kansas City area bank fails with bad loans
KANSAS CITY, Mo., -- Hillcrest Bank, the seventh largest in the Kansas City, Mo., area with a heavy exposure in real estate loans, has failed.
Hillcrest, based in Overland Park, Kansas, has $1.65 billion in assets and 41 branches. It folded Friday and was set to reopen Saturday with new owners, the Boston investment group NBH Holdings Corp., The Kansas City (Mo.) Star reported.
NBH Holdings is also buying the traditional banking operations of $4.2 billion Bank Midwest based in Kansas City, Mo., the newspaper said. Once completed, the two deals will place NBH Holdings in the top ranks of Kansas City banking.
All of Hillcrest's $1.54 billion in deposits remain with the bank and customers will still have access to their money, the Federal Deposit Insurance Corp., FDIC, said.
The failure was the 138th in the nation this year and the 10th in the Kansas City area since the start of 2008. FDIC said it expected to lose $329.7 million from the failure.
Hillcrest is the largest area bank to fail since the $2.9 billion Home Savings Association went under in 1991.
KANSAS CITY, Mo., -- Hillcrest Bank, the seventh largest in the Kansas City, Mo., area with a heavy exposure in real estate loans, has failed.
Hillcrest, based in Overland Park, Kansas, has $1.65 billion in assets and 41 branches. It folded Friday and was set to reopen Saturday with new owners, the Boston investment group NBH Holdings Corp., The Kansas City (Mo.) Star reported.
NBH Holdings is also buying the traditional banking operations of $4.2 billion Bank Midwest based in Kansas City, Mo., the newspaper said. Once completed, the two deals will place NBH Holdings in the top ranks of Kansas City banking.
All of Hillcrest's $1.54 billion in deposits remain with the bank and customers will still have access to their money, the Federal Deposit Insurance Corp., FDIC, said.
The failure was the 138th in the nation this year and the 10th in the Kansas City area since the start of 2008. FDIC said it expected to lose $329.7 million from the failure.
Hillcrest is the largest area bank to fail since the $2.9 billion Home Savings Association went under in 1991.
