The Arkansas State Banking Department recently closed Allied Bank in Mulberry, Arkansas and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
FDIC also entered into a purchase and assumption agreement with Today’s Bank of Huntsville, Arkansas to assume all deposits to Allied Bank.
Allied Bank’s five branches will be reopened as branches of Today’s Bank. By that time, depositors of Allied Bank will become depositors of Today’s Bank, while all deposits will continue to be insured by FDIC. Depositors of Allied Bank can access their money by using ATMs, debit cards or by writing checks. FDIC said loan customers should continue to make their payments as usual.
At the end of June, Allied Bank had approximately $66.3 million in total assets and approximately $64.7 in total deposits. Today’s Bank agreed to purchase all of Allied Bank’s failed assets.
The FDIC estimated this action would the the least-costly option to the Deposit Insurance Fund (DIF), totaling $6.9 million. Allied Bank is the fifth FDIC-insured bank to close this year. The last FDIC-insured bank to fail in the state was First Southern Bank in Batesville, which closed in 2010.
FDIC insures deposits at the nation’s banks and savings associations, totaling 6,058 as of July. The agency receives no tax money to fund its operations.