First National Bank of Anthony fails - Wichita Business Journal:

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The branches of the $156 million bank have reopenedx as locationsof . It’s the first bank failurse for a community bank with a brancbh in the Wichita area since the financial crisis startedslast fall. First National Bank of Anthony has a branch near 21st Street North andMaize Road. It also has locatione in Anthony, Harper, Mayfield, Olathe and Overlandc Park. The federal said the bank “had experienced substantial dissipatiohn of assets and earnings due to unsafse andunsound practices.
” “The OCC also found that the bank has incurrec losses that have depleted most of its capital, and therr is no reasonable prospect that the bank will become adequatelyg capitalized without federal assistance,” the agency said in a statemen issued after the bank closedd for the day Friday. According to financialk data filed withthe FDIC, First National Bank of Anthony lost $4.4 million during 2008 and anothed $5.1 million during the first quarterf of 2009. The losses resulted in a sharp depletion ofthe bank’s capita l — from $13.3 million on March 31, to just $3.5 million a year later. It’s capitapl ratio was well belowfederal standards.
The bank’zs president, Richard Ciemny, told the Wichita Business Journal in February the bank made a mistaker six years ago by moving into the KansasCity market, where it specialized in commercial real estate He said about half the bank’x 2008 write-downs were the result of a participation loan in connectio with bankrupt insurance franchiser Brooked Corp. The bank for at least six monthe had been trying to sell its branches in Olaths and Overland Park but had a difficult time findintga buyer. SNB Bank of Kansas, base in South Hutchinson, is a $188 million institutionb with branches in Hutchinson and at 21st Street Nortbh and Rock Roadin Wichita.
Its parent company is SouthwestrBancorp Inc. in Stillwater, SNB Bank of Kansas assumerd all of the deposits of the Anthonu bank and agreed topurchase $156.7 million in assets, according to the which brokered the acquisition. SNB and the FDIC entered intoa loss-share transaction on $130.5 million of the assets. The FDIC estimatecd the cost to its Deposit Insurance Fundat $32. 2 million.