This alert may not be shared outside your organization, Do Not Repost or send, place on other websites, List servers, or send to others via email, including other associations or parties. Members and Law enforcement use only. Contact us for any permissions. To do otherwise will result in the loss of membership.
Banks caught up in massive bank fraud begin to show temporary losses
The Nebraska Examiner
LINCOLN — Millions of dollars of fraudulent loans obtained by Lincoln businessman Aaron Marshbanks are starting to show up in the bottom line of Nebraska banks and savings and loans.
Six financial institutions that provided loans to Marshbanks reported net losses during the fourth quarter of 2022, according to figures obtained by the Nebraska Examiner.
And two of those institutions, Western National Bank, based in Chester, and I3 Bank, based in Bennington, reported net losses for the entire year.
Nebraska banks ‘incredibly strong’
Kelly Lammers, director of the Nebraska Department of Banking and Finance, said Friday that he could not comment on individual banks but said he stands by earlier comments that despite more than $50 million in estimated fraudulent loans obtained by Marshbanks, Nebraska financial institutions are well capitalized to withstand such losses.