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Troubled Arkansas-based Allied Bank shuttered by regulators

Mulberry, Ark.-based Allied Bank, the subsidiary of , was closed bythe Arkansas State Banking Department on Sept. 23.

All of its deposits and essentially all of its assets werepurchased by Springdale, Ark.-based Mathias Bancshares Inc. unit Huntsville, Ark.-basedToday's Bank ($116.0million).

In recent months, Allied Bank had been "criticallyundercapitalized" by regulators and received a prompt corrective actiondirective. It is the fifth bank to fail in 2016, and it is the first Arkansas-basedbank to fail since 2010.

Its five branches will reopen as branches of Today's Bankduring normal business hours. According to the FDIC, as of June 30, Allied Bankhad approximately $66.3 million in assets and $64.7 million in deposits. TheFDIC estimates that the cost to its deposit insurance fund will be $6.9 million.