A bank that made high-risk business and consumer loans in a polygamous community on the Utah-Arizona border has been taken over.
The Federal Deposit Insurance Corporation announced Friday that Far West Bank would assume $40.4 million in insured deposits for the failed Bank of Ephraim.
The Sanpete County-based bank lost $778,000 last year after writing off slightly more than $1.3 million in bad loans.
The Bank of Ephraim, founded in 1905, has two offices in Ephraim. It opened a branch in the polygamous community of Hildale in 1995, and, two years ago, opened one in Mount Pleasant.
Three of the bank’s branches were scheduled to reopen Monday as Far West locations. The Hildale branch will not be reopened.
After the Bank of Ephraim got into financial trouble, officials said they had tightened credit standards and stopped accepting leaseholds on property as collateral for loans.
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