I Swear There was a Bank there a Minute Ago

[Terrel L. Shields]

Friday, the doors closed on Arkansas National Bank a. k. a. ANB Financial - A high flying bank in NW Arkansas which was created in 1995. The bank, one of the first truly new banks created in the region since the S & L Crisis, often bragged about being smarter, richer, better than those Walmart scumbags at Arvest Bank....."Arvest is too conservative..Arvest won't loan for "good" project...Arvest doesn't pay their depositors enough.." My nephew dated an employee of ANB and had that thrown up in his face for months.

Monday morning the 283 employees of ANB will start getting their marching orders from Pulaski Bank of Little Rock who will take over the bank...some will be marching out the door. I am sure that the CEO, Dan Dykema will be leading that pack -along with their pilot who ferried the big shots of the bank between NWA and Jackson Hole, WY where they had a branch office. They also had offices in Utah and Idaho - reportedly a sore spot with the regulators as well. They had $400 million in non-performing loans - 22% of their loans. There are 40 shareholders who likely will lose their entire investment. 647 accounts exceeded the FDIC insure amount to the tune of near $40 million.....OUCH.

The FDIC has found unsafe practices in June of 2007 and in Dec ANB reported a net loss of $80.9 million. In Jan. the FDIC gave them an ultimatium to shore up their reserves. They were unable to after raising less than $1,000,000 to cover a shortfall in reserves. The First quarter results were the nails in the coffin. Clearly the bank knew it was history. The depositors with uninsured deposits obviously didn't see it coming.

 

[Austin]

I came up to the forum tonight to talk to you about this Terrell and zap the first post I see is you talking about the bank. You had been warning of an Ark bank going belly up. We have one local bank belly up but it is minority owned and so they are stringing them along. No one wants their accounts.

I remember about 25 years ago I sold a house at auction to a retired police officer who was working in the collection department of the then largest bank in the area. We closed the loan in his bank office and he paid in cash and had the money in a paper bag. He said he kept his money at home in a safe and would never keep his money in any damn bank. I axed why and he said his dad lost $80,000 in a bank collapse during the bubble correction of the 1930's. I thought he was out of touch but as they say: "What goes around comes around." If these big banks keep losing money sooner or later interest rates are going through the roof. You can take that to the bank.:new_all_coholic:

 

[Terrel L. Shields]

I see this as the tip of an iceberg. You have to be a real bank history buff or an oily buff to recall the first bank that failed after the Oil biz went down. A suburban bank called Penn Square in Oklahoma City was the first in a huge number of financial institutions that went under during the 1980s. Few people recall that the banks started failing even before the S & L crisis went full blown

 

[Austin]

"I see this as the tip of an iceberg."

Bad analogy Terrell. Congers up images of the Titanic. You know, the "Unsinkable ship." That is what the captain of the Titanic said just after he crashed into it.

 

[Restrain]

Been waiting on this one to come down the pipe. Figured it was the one you had been talking about, Terrell. Seen these high-flying banks from Arkansas before, watched them crash and burn. Wonder how many more there are...Hmmmm.

 

[Terrel L. Shields]

Wonder how many more there are...Hmmmm

lots...I have a short list of FIVE...I am awaiting the bank first Q disclosure statements published in our paper. They should be out soon, unless I missed them last week. It will give a running tab of all the state's banks.

 

[Terrel L. Shields]

Sunday's paper is replete with stories of people beating on the bank doors Saturday wanting to know if their money is safe...duh.? Like they didn't see it coming??? FOR MONTHS! And there were millions in accounts that are more than the insured limit.
Next week's paper will almost surely have a humble hat-in-hand story about some old person who said they didn't realize that they had more than the insured limit in the bank and stand to lose a big chunk of it...gimme a break.

 

[rcsone]

.....Prior and 1st quarter's reports can be viewed and printed through the FDIC site.....some have just come in in the last few days.....best to all........rs

 

[Terrel L. Shields]

http://newsfeedresearcher.com/data/articles_b19/idb2008.05.10.13.11.37.html

The new poster child for the image of Bad Banking Practices...

Dan Dykema is the CEO and Prez of ANB

 

[Financially Feasible]

I'm going to keep my money in the bank - I'm not close to sneaking up on the FDIC limit. I mean... after all... I AM an appraiser... :icon_mrgreen: