Home / AZ/DC / Fed gov. orders Flagstaff bank to raise cash

Fed gov. orders Flagstaff bank to raise cash

FLAGSTAFF – A Flagstaff bank has been ordered by the Federal Deposit Insurance Corp. to raise $2 million in new capital.

The FDIC wants First State Bank of Flagstaff within 120 days to fix its current financial condition.

The bank was also ordered by the federal government to develop a plan to identify and review all ”problem” loans worth more than $250,000 and put in place new standards for any loans related to real estate.

First State was also ordered to add two new independent directors with banking industry experience to its board of directors within the next 90 days.

Bank President Kyle Curtis said the order does not affect customer deposit accounts or loans.

FDIC-member banks insure deposits up to $250,000 per person.

First State has four branches in Flagstaff and offices in Cottonwood and Payson.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Reply

Your email address will not be published. Required fields are marked *




Check Also

Private Prison

Arizona prisons up number of sanitary napkins for inmates

The Arizona Department of Corrections on Tuesday said it would immediately triple the number of free sanitary napkins it automatically provides each month to female inmates as it works to head off a Democratic proposal in the Legislature to provide unlimited free tampons, pads and other feminine hygiene products.