Depositors with funds in a seized Arizona bank stand to lose $1.8 million in uninsured deposits.
The Arizona Republic reports the deposits exceeded Federal Deposit Insurance Corp. insurance limits.
Bank regulators seized First Arizona Savings last Friday.
Checks have been mailed out to insured depositors, but the closure creates logistical problems for the bank’s borrowers, direct depositors, safe-deposit holders and others.
The Office of Thrift Supervision shut down the Scottsdale-based financial institution citing a “critically undercapitalized” position.
The company began operations in 1988 as First Arizona Savings and Loan Association with branches in Scottsdale, Glendale, Bullhead City, Fort Mohave, Kingman and Lake Havasu City.