Gold Banc Shuts Mortgage Banking Unit

Gold Banc, Leawood, Kan., is taking a $17.7 million writeoff in its fourth quarter earnings as aresult of shutting down its mortgage banking subsidiary, Regional Investment Co., Kansas City. Gold Banc purchased the subsidiary last year, but the mortgage company has not met performance expectations.Regional lost $1 million in the third quarter, and $1.5 million over the first nine months of 2000. It originatesloans in 17 states. Michael W. Gullion, chairman and chief executive of Gold Banc, said rising interest rates andgrowing consumer confidence in shopping for rates online have reduced profit opportunities. "These trendshave led us to conclude that the net branch concept of mortgage origination does not fit the Gold concept of communitybanking," he said. The bank will concentrate on making mortgage loans in its retail banking branches in Kansas,Missouri, Oklahoma, and Florida.