Barnes Banke closed by federal regulators

SALT LAKE CITY (Deseret News)  — Kaysville-based Barnes Bancorp Inc. was closed Friday by the Utah Department of Financial Institutions after several troubled months and a formal investigation by federal regulators.

Barnes Bank is the first Utah financial institution to have failed in 2010. The last local bank to fail was Layton's America West Bank, which went under in May of last year.

An agency has been created to handle the assets and accounts of Barnes Bank. Managed by Zions Bank, the Deposit Insurance National Bank of Kaysville will mail checks to holders of Barnes CDs and IRAs on Tuesday, according to a news release from the Federal Deposit Insurance Corporation.

The Barnes Bank Web site refers customers to the FDIC for information. Deposits and some special accounts are insured up to $250,000, according to federal law. Other accounts are fully insured.

Checks written through Barnes Bank will be honored until Feb. 12, according to the FDIC, and ATMs will be open until Jan. 29. Customers with loans financed by Barnes Bank are encouraged to continue making regular payments.

Barnes Bank has nine locations along the Wasatch Front and one in St. George. They will be open from 9 a.m. to 1 p.m. Saturday under management of Zions Bank and will reopen Tuesday for an interim transition period.

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