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ANB Financial Fails; Federal Regulators Close Bank

3 min read

ANB Financial NA of Bentonville was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation was named Receiver, according to a news release issued by the FDIC.

"All insured deposit accounts have been transferred to Pulaski Bank and Trust Company, Little Rock and will be available immediately," the release stated.

All ANB offices will re-open as Pulaski Bank on Monday, May 12 at 8:30 a.m. ArkansasBusiness.com reported earlier this week that, according to the latest Uniform Bank Performance Reports, ANB Financial loans 30 days or more past due were valued at $614.6 million as of March 31, up 58.3 percent from Dec. 31.

The bank had net income of $691,000 and a loan loss allowance of $100.9 million as of March 31. The bank lost $80.9 million in 2007.

On June 25, ANB was issued a formal enforcement action from its federal regulator, the Office of the Comptroller of the Currency. Dan Dykema, chairman and CEO of ANB, said at the time that the document related mostly to the bank’s asset and loan growth and that the OCC wanted the bank to slow its growth.

"It is actually a fairly innocuous agreement," Dykema said last year. "It’s really not that uncommon for banks to have to deal with this now and again … it’s just our turn."

Then on Jan. 29, ANB Bancshares Inc., the bank’s holding company, was issued an agreement from the Federal Reserve Bank of St. Louis. The Fed required ANB to submit a detailed plan about how it would service its outstanding debt and other obligations as well as address its sourcing for additional funds. The deadline was March 15.

Dykema said on March 5 that the plan was to be submitted the next day, and that he expected the Fed to expedite its review of the plan.

Earlier in March, ANB closed a wholesale mortgage office in Little Rock, leaving its Conway office open.

ANB is the third bank to fail this year. On Jan. 25 Douglass National Bank of Kansas City was closed by the OCC due to problems with its loan portfolio, and Hume Bank of Hume, Mo. was closed on March 7 by the commissioner of Missouri’s Division of Finance.

As of Dec. 31, Douglass National Bank had 34 percent of its net loans and leases in nonaccrual status, a total of $6.04 million. Hume Bank had $997,000 worth of loans in its nonperforming column, or about 12.7 percent of its portfolio. The bank had been lying to regulators about its condition. ANB had 25.5 percent of its loans in past due and nonaccrual status as of Dec. 31, or about $388.1 million.

At the end of 2004. ANB was the top-performing bank in Northwest Arkansas with a return on terms of return on assets of 1.82 percent.

From June 30, 2005 to June 30, 2007 ANB’s deposits grew 242 percent. Dykema had told the Business Journal that most of those deposits were "brokered" or purchased from other banks in order to fund its loan growth.

As of Dec. 31, the bank had $1,596.2 billion in brokered deposits, about 85 percent of its total year-end deposits.


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