(Source: The Wichita Eagle (Wichita, Kan.))
By Jerry Siebenmark, The Wichita Eagle, Kan.
Nov. 7--The bankruptcy of a northeast Kansas insurance company is affecting 11 Kansas-based banks, including two in Wichita.
Fidelity Bank and RelianzBank are among the thousands of individuals and companies that are named as creditors in Brooke Corp.' s Chapter 11 reorganization bankruptcy, which was filed Oct. 28 in U.S. Bankruptcy Court in Kansas City, Kan.
In the filing, Brooke listed assets of more than $512 million and debt of more than $447 million as of June 30.
The creditors list does not specify how much is owed to each creditor, nor for what.
Fidelity spokesman Al Sanchez said his bank is owed money on a loan to Brooke.
He characterized it as a "small exposure" and that any loss from the loan will not affect the bank's safety or soundness.
"It's business as usual," Sanchez said.
David Harris, chief executive of RelianzBank, said his bank is also owed money for a loan.
Like Fidelity, he declined to disclose the specific amount of the loan.
"We identified the challenges early on and took the necessary steps to protect ourselves," Harris said. "Ultimately, this will have very minimal impact to the bank, if at all."
The nine other Kansas banks listed as creditors in the bankruptcy are Stockton National Bank in Stockton, Security State Bank in Scott City, Heritage Bank in Topeka, Great American Bank in DeSoto, Garnett State Savings Bank in Garnett, First National Bank and Trust in Phillipsburg, First National Bank of Phillipsburg, Citizens State Bank in Hugoton and Columbian Bank and Trust, a Topeka-based bank that the Kansas bank commissioner closed in August.
Reach Jerry Siebenmark at 316-268-6576 or jsiebenmark@wichitaeagle.com.
-----
To see more of The Wichita Eagle, or to subscribe to the newspaper, go to http://www.kansas.com.
Copyright (c) 2008, The Wichita Eagle, Kan.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
NASDAQ-NMS:BXXX,
A service of YellowBrix, Inc.
