Two more area banks gain TARP approval

Two more Springfield-area bank holding companies have sold shares of preferred stock and warrants to the federal government through the U.S. Treasury's Capital Purchase Program.

Springfield-based Liberty Bancshares Inc. and Ozark-based Gregg Bancshares Inc. - the holding company for Glasgow Savings Bank - are the latest financial institutions in the Ozarks to participate in the program. The CPP is a component of the $700 billion federal bailout plan - known formally as the Troubled Asset Relief Program, or TARP - approved Oct. 3 by Congress.

Under the program, the Treasury has agreed to purchase up to $250 billion of senior preferred shares in qualifying U.S. controlled banks and savings associations, as well as certain savings and loan holding companies.

On Feb. 13, the government purchased $21.9 million worth of preferred stock and warrants from Liberty Bancshares, which has 17 Liberty Bank locations in southwest Missouri, and $825,000 in shares and warrants from Gregg Bancshares, according to a Treasury transactions report released Tuesday.

Treasury has invested about $196.4 billion in more than 400 banks in 47 states, according to the report.

To date, 15 Missouri bank holding companies - including Great Southern Bancorp Inc. and Guaranty Federal Bancshares Inc., both based in Springfield - have participated in the program.

Last week, Great Southern was listed as the top-performing financial institution among those that have received TARP money, according to the Ethisphere TARP Index Report.

The government's investment in Great Southern posted a 27.1 percent, or $15.7 million, gain for the week ended Feb. 20, according to the report. Read the report at the link below.[[In-content Ad]]This story has been corrected. It originally said Gregg Bancshares is the holding company for Southwest Community Bank.