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.This story has been corrected. It originally said Gregg Bancshares is the holding company for Southwest Community Bank.