The bank’s board of directors chose to turn Sun Security over to the Missouri Division of Finance last Friday because the bank was on the brink of insolvency.
Great Southern Bank, which is based in Springfield, then agreed to take over Sun Security.
Missouri Division of Finance spokesperson Travis Ford says the bank’s failure is a common story.
"The demise of this bank is mainly attributed to overly aggressive and risky lending strategies. And that’s usually what brings down a bank. Making loans to folks who cannot repay. In this case, it was commercial and real estate development," Ford said.
The bank had assets valued at 350 million dollars, which Ford says makes it an average-sized Missouri bank. Great Southern has 3 billion dollars in assets.
Sun Security had 27 branches, primarily in southern Missouri, including Fredericktown, Marquand, Arcadia, Pilot Knob, Viburnum, Annapolis, Lesterville and Piedmont.
Jacob McCleland, KRCU