COLORADO SPRINGS — Classic Cos., Colorado Springs’ largest locally based homebuilder, says it has lined up new sources of borrowing because of the anticipated failure of Texas’ second-biggest publicly owned bank, which has served as its primary construction lender for 15 years.
Guaranty Financial Group, based in Austin, could be closed by federal regulators as early as Friday, several Texas media outlets reported this week. Guaranty said last month it probably would fail after loan losses and write-downs left it “critically” short of capital.
Guaranty Financial in Texas is not affiliated with Denver-based Guaranty Bank and Trust Co. and its parent, Guaranty Bancorp.
Doug Stimple, Classic’s chief executive, said Wednesday that Guaranty Financial’s condition has been well- known since April and that the builder has been positioning itself for the bank’s failure.
Classic has two new lenders in place and is close to finalizing a deal with a third, he said. He declined to disclose the new lenders.
