Jupiter Kalambakal - AHN News Writer
Bentonville, AK (AHN) - Federal regulators said Friday it shut down nine ANB Financial National Association banks in Arkansas due to "unsafe and unsound" business practices.
Federal Deposit Insurance Corp.Spokesman David Barr, was quick to assure bank customers that they may continue to issue checks and withdraw money from their ATMs over the weekend.
The Financial Times said ABN's nine offices will reopen Monday under Pulaski Bank and Trust Co., and that client deposits would automatically be converted from ANB to Pulaski.
The Associated Press said regulators found "lax lending standards" at ANB Financial, which financed construction and development projects in Utah, Idaho, Wyoming and Arkansas.
Financial Times added that the bank failure would cost ABN $214 million in its federal deposit insurance fund about $2.1 billion.
The FDIC said the bank had $2.1 billion in assets and $1.8 billion in total deposits as of Jan. 31.
ANB Financial is the third FDIC-insured bank to fold up this year. AP cited that Missouri-based Douglass National and Hume Banks were shut down in January and March, respectively.
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