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First National Bank of Lawrence County Bilked of at Least $3.9M

2 min read

First National Bank of Lawrence County has been the victim of a fraud valued at approximately $3.9 million, President and CEO Milton Smith has acknowledged.

As a result of the fraud, the bank recognized a net loss of almost $2.8 million for the first half of the year after posting a $702,000 profit in the first quarter. The June 30 call report attributes it to “loss due to employee theft/fraud.”

More: See First National Bank of Lawrence County’s call report.

The bank, which has assets of $188.8 million, remains well capitalized, with equity capital of approximately $16 million, down from $20 million on March 31.  

The fraud, first reported by the Jonesboro Sun, is under investigation by the FBI, but FBI spokeswoman Deb Green said a comment at this time would be “inappropriate.”

Complete Statement from First National Bank of Lawrence County

(This is the complete statement from the bank about the “apparent fraud.”)

In its June 30, 2015 Call Report, First National Bank of Lawrence County will recognize an approximately $3.9 million reduction in capital because it was the victim of an apparent fraud. Prior to the fraud, the Bank had built more than sufficient capital reserves to protect itself and its customers. As a result, all deposits maintained at the Bank remain safe, FDIC insured (up to the $250,000 limit) and business will continue as normal. The Bank continues to meet all standards to qualify as “well capitalized” pursuant to federal bank regulations. The Bank will continue to operate as a source of strength to the communities it serves and all customers. Any customer who wishes to discuss the status of their relationship with the Bank should contact Bank President and Chief Executive Officer Milton Smith at (870) 886-5959.

Due to the ongoing investigation, the Bank is not in a position to provide any additional details regarding the underlying fraud.

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