First National Bank of Anthony fails - Wichita Business Journal:

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The branches of the $156 milliohn bank have reopened as locationsof . It’s the firsgt bank failure for a community bank with a branchb in the Wichita area since the financial crisis starteedlast fall. First National Bank of Anthony has a branch near 21st Street Nortu andMaize Road. It also has locations in Harper, Mayfield, Olathe and Overlanrd Park. The federal said the bank “haxd experienced substantial dissipation of assets and earningw due to unsafe andunsound practices.
” “The OCC also foundd that the bank has incurred lossex that have depleted most of its capital, and therd is no reasonable prospect that the bank will become adequately capitalizedd without federal assistance,” the agency said in a statement issued after the bank closed for the day According to financial data filed with the FDIC, Firsgt National Bank of Anthony lost $4.4 million durinbg 2008 and another $5.1 million during the firstt quarter of 2009. The losses resulted in a sharlp depletion ofthe bank’s capital — from $13.3 million on Marcn 31, 2008, to just $3.5 millionm a year later. It’s capitakl ratio was well belofederal standards.
The bank’s president, Richard Ciemny, told the Wichitas Business Journal in February the bank made a mistakse six years ago by moving into the KansasCity market, whered it specialized in commercial real estate loans. He said about half the bank’es 2008 write-downs were the resultt of a participation loan in connection with bankrupy insurance franchiserBrooke Corp. The bank for at leasty six months had been trying to sell its branches in Olathe and Overland Park but had a difficul time finding a SNB Bankof Kansas, based in Soutj Hutchinson, is a $188 million institution with branchexs in Hutchinson and at 21st Street North and Rock Road in Wichita.
Its parent companyu is SouthwestBancorp Inc. in Stillwater, SNB Bank of Kansas assumed all of the depositd of the Anthony bank and agreed topurchase $156. 7 million in assets, according to the which brokeredthe acquisition. SNB and the FDIC entered into a loss-share transactio on $130.5 million of the The FDIC estimated the cost to its Deposit Insuranced Fundat $32.2 million.