Walnut Ridge bank receives insurance settlement in embezzlement - KAIT Jonesboro, AR - Region 8 News, weather, sports

Walnut Ridge bank receives insurance settlement in embezzlement case

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WALNUT RIDGE, AR (KAIT) -

First National Bank of Lawrence County has received an insurance settlement of nearly $2.7 million in an embezzlement case.

Arkansas Business reports the settlement helps offset the $3.9 million reportedly lost in an embezzlement scheme.

Region 8 News first reported on the embezzlement in August of 2015. Bank president Milton Smith told Region 8 News the money was stolen but customer deposits were safe.

Details of the case are still “very hush-hush,” the paper reported. When Region 8 News asked about the case in August, Smith said he couldn't go into detail and stated the FBI is investigating.

The settlement raised the Walnut Ridge bank’s equity capital back above $20 million, helping it to end 2015 with a net income of $1.27 million, according to Arkansas Business.

That’s compared to $2.7 million in 2014.

Milton Smith, the bank’s CEO, is quoted as saying, “All things considered, I can’t complain. No one would listen to me if I did.”

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