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ANB Financial - Bank Failure

Posted by Wendell Brock on Fri, May 09, 2008

I. Introduction

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.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should help answer many of your questions.

II. Press Release

The FDIC has issued a press release (PR-33-2008) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact David Barr at 202-898-6992.
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III. Acquiring Financial Institution and Your Insured Deposits

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. You may view more information about Pulaski Bank and Trust Company by visiting their web site.
Pulaski Bank and Trust Company Web Site (

Principal and interest on insured accounts, through May 9, 2008, are fully insured by the FDIC, up to the insurance limit of $100,000. You will receive full payment for your insured account. Certain entitlements and different types of accounts may be insured for more than the $100,000 limit. IRA funds are insured separately from other types of accounts, up to a $250,000 limit.

If it is determined that you have uninsured funds, the FDIC will mail you a Receiver Certificate. This certificate entitles you to share proportionately in any funds recovered through the assets of ANB Financial, NA. This means that you may eventually recover some of your uninsured funds.

All accounts that exceed the $100,000 insurance limit, and/or all accounts that appear to be related and exceed this limit, are reviewed by the FDIC to determine their ownership and insurance coverage. If it appears that you have potentially uninsured funds, an FDIC Claim Agent will contact you, by either telephone or mail, regarding your account(s). Or, you may call 1-877-367-2719 up to 9:00 pm Central on May 9, 2008 and between 8:00 am and 6:00 pm Central thereafter, to arrange for a telephone interview with a Claim Agent. The Claim Agent may direct you to download and submit a particular form that will assist in expediting the processing of your claim.

List of Affidavits, Declarations, and Forms available for download

Your transferred deposits will be separately insured from any accounts you may already have at Pulaski Bank and Trust Company for six months after the failure of ANB Financial, NA. Checks that were drawn on ANB Financial, NA that did not clear before the institution closed will be honored up to the insurance limit. You may speak to an FDIC representative regarding deposit insurance by calling: 1-877-ASK-FDIC (1-877-275-3342).

You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Pulaski Bank and Trust Company by either making a deposit to or a withdrawal from your account, provided the deposits are not pledged as collateral for loans.

For all questions regarding new loans and the lending policies of Pulaski Bank and Trust Company, please call 1-888-226-5262.

For additional information on deposit insurance visit EDIE the FDIC's Electronic Deposit Insurance Estimator.

EDIE - FDIC's Electronic Deposit Insurance Estimator

V. Banking Services

You may continue to use the services to which you previously had access, such as automatic teller machines (ATMs), safe deposit boxes, night deposit boxes, wire services, etc.

Your checks will be processed as usual. All outstanding checks will be paid against your available insured balance(s) as if no change had occurred. Pulaski Bank and Trust Company will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact Pulaski Bank and Trust Company, Customer Service Department, at 1-888-226-5262. An account representative will clear up any confusion about the validity of your checks.

After May 9, 2008, your account will earn interest at a rate determined by Pulaski Bank and Trust Company. You will be notified by letter regarding this matter.

Your automatic direct deposit(s) and/or automatic withdrawal(s) should be transferred automatically to your Pulaski Bank and Trust Company. You should contact Pulaski Bank and Trust Company, however, to discuss your account(s) and to insure that service is not delayed or discontinued.

All your deposit account histories and records will be transferred to Pulaski Bank and Trust Company. If Pulaski Bank and Trust Company requires any additional signatures or forms, it will notify you. If you have any questions or special requests, you may contact a representative of Pulaski Bank and Trust Company at 1-888-226-5262.
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VI. Loan Customers

If you had a loan with ANB Financial, NA, you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to in your promissory note with the failed institution. Checks should be made to your former bank and sent to the same address until further notice.
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VII. Possible Claims Against the Failed Institution

Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process.

Please note: there are time limits for filing a claim, as specified in the notice.

If you provided a service for ANB Financial, NA and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: ANB Financial, NA
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201

Call toll free 1-800-568-9161
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VIII. Priority of Claims

In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:

1. Depositors
2. General Unsecured Creditors
3. Subordinated Debt
4. Stockholders

IX. Dividend Information

No dividends have been paid at this time.
Dividend Information on Failed Financial Institutions
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X. Brokered Deposits

The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.

Topics: FDIC, Bank Failure, Bank Regulators

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BankNotes© is published by De Novo Strategy as a service to clients and other friends. The information contained in this publication should not be construed as legal, accounting, or investment advice. Should further analysis or explanation of the subject matter be required, please contact De Novo Strategy at