State takes over Bank of Ephraim

Deseret News (Salt Lake City) | June 26, 2004| | Copyright

Utah suffered its first bank failure in nearly 16 years Friday as Far West Bank of Provo acquired the deposits of the Bank of Ephraim after Utah's Department of Financial Institutions took control of the Ephraim business.

Commissioner G. Edward Leary said the department took possession of the Bank of Ephraim to protect depositors and the public, finding, among other things, that the bank was insolvent due to an embezzlement by a former bank employee and because of asset quality concerns.

This bank failure was Utah's first since Tracy Collins Bank in Salt Lake City failed in December 1988.

The ...

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