Dedicated to Deposits: Deals, Data, and Discussion

Bank Failure at ANB Financial - FDIC Press Release

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The FDIC just announced the closure of ANB Financial:
On May 9, 2008, ANB Financial, NA, Bentonville, AR was closed by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

Account holders with insured deposits shouldn't have any problems:
All insured deposit accounts have been transferred to Pulaski Bank and Trust Company, Little Rock, AR ("assuming institution") and will be available immediately. Your bank will re-open on Monday at 8:30 am at the former ANB Financial, NA main office and branch

Customers who exceeded the FDIC limits may lose some of their money. Unfortunately, there were many who had over the limits.
At the time of closing, ANB Financial had approximately $39.2 million in 647 deposit accounts that exceeded the federal deposit insurance limit. These customers will have immediate access to their insured deposits, and they will become creditors of the receivership for the amount of their uninsured funds.

I've posted on ANB Financial a couple of times. The last time was in March when it was offering 5% CDs at their Idaho branch. The bank is based in Arkansas, but it also had branches in Idaho and Wyoming. The ratings at Bankrate and BauerFinancial seemed to have been on target (0 out of 5 stars at BauerFinancial and 1 out of 5 at Bankrate based on 12/31/07 data).

With the subprime mess, I'm surprised we haven't had more bank failures. This is only the third this year, and only 3 failed last year. The largest failure last year was NetBank. Refer to this post for more details on NetBank's closure.

I just noticed this post at Calculated Risk which has a good discussion of what caused ANB Financial to fail.

Thanks to the readers who emailed and commented on this news.


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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
In this day and age I am amazed that people still want to exceed the FDIC limits on deposits. Luckily, they are usually the folks that can most afford to lose it, but not always.

1
Comment #2 by Anonymous posted on
Anonymous
I don't care about high rates anymore! I had money at ANB and although I'm under the insurance limit, it's still not a nice feeling. It's ten days later and it's not sorted out yet. I've learned that the higher the return, the higher the risk. I bought this CD a year ago and didn't think then to check the bank rating. Now I wouldn't put money in a bank with less than three stars, if at all. It's back to Treasuries for me.

1