ANB Financial, a $2.1 billion bank in Arkansas, was on Friday closed down by US regulators, and became largest bank failure of the year and the third largest failure since the savings and loan crisis of the 1980s and 1990s, Financial Times reports.
The development comes amid warnings by some regulators of a likely increase in bank failures, which have been at historically low levels. ANB had about $2.1 billion in assets and $1.8 billion in total deposits as of January 31, according to the Federal Deposit Insurance Corporation, which guarantees bank deposits.
ABN’s nine offices will reopen next week as branches of Pulaski Bank and Trust Co. with deposits automatically transferred to that bank, said the FDIC, which added that the failure would cost its federal deposit insurance fund $214 million.