Beleaguered Barnes Bank maps capital plan for shareholders

 (Salt Lake Tribune) Shareholders of Barnes Bank have been told what the hard-pressed lender is doing to raise more capital and avoid further enforcement actions by federal and state regulators.

"As a result of the discussions, potential sources for increasing the bank's capital are being pursued in a unified effort between the bank's management, directors and shareholders," Chairman and CEO Curtis Harris said in a statement issued Monday.

His statement came after a special meeting on Friday with shareholders of the privately held bank. The meeting was called to discuss the bank's deteriorating capital ratios.

The statement also said shareholders were told "of steps already taken by management or being taken to place the company in the position to be able to raise capital."

He said deposits are secure and insured by the Federal Deposit Insurance Corp.

Harris did not return a telephone call for comment on Monday.

On May 13, the Federal Reserve and the Utah Department of Financial Institutions ordered Barnes to formulate a plan to restore its depleted capital reserves within 60 days.

The Kaysville-based community bank was also told to write off or foreclose on uncollectible loans and improve its credit-risk management practices.

Last week, Harris declined to say whether Barnes was healthy. The 118-year-old bank lost almost $68 million in its latest fiscal quarter.

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