Barnes Bancorp. to hold shareholder meeting Friday

KAYSVILLE — Barnes Bancorp., already under the eye of federal regulators, will hold a special shareholder meeting on Friday.

According to a statement released to the media, the meeting is to give shareholders "current information regarding the bank's financial performance in this economy and the plans for 2010 and beyond."

Vice president and chief financial officer Douglas Stanger said the meeting is closed to the public and press, and declined to disclose the location. Only shareholders will be allowed to attend.

Bank leaders have met with federal regulators as part of an ongoing examination. In May, Barnes Bank officials signed an agreement with the Federal Reserve to file within 60 days their plans for strengthening both board oversight and management and credit risk-management practices, among other provisions. The agreement also called for Barnes to address deficiencies found in a joint examination by the Federal Reserve Bank and the Utah Department of Financial Institutions in fall 2008.

In the written statement released Tuesday, Curtis H. Harris, chairman, president and chief executive officer, and Stanger reassured stockholders that bank accounts are secure and are backed by the Federal Deposit Insurance Corp. for at least $250,000. Checking and some other accounts are fully insured, regardless of the amount. And retirement accounts and jointly owned accounts are insured to $250,000 in addition to individual account coverage.

Stanger indicated bank officials are looking forward to the bank's future. And Harris said, "We have been helping Utah individuals, families and businesses since 1891, and are encouraged by success in our bank-owned property sales, local market progress and improvements in the economy in general."

An employee confirmed that he and colleagues were told by e-mail a couple of weeks ago that bank officials believe the Federal Reserve will soon announce a deadline to increase the capital assets, and that could make customers nervous about their account safety.

Barnes Banking Co. has about 200 employees in five Utah counties. It has nine branches along the Wasatch Front and a 10th in St. George. It also has assets in excess of $800 million, according to the release.

e-mail: lois@desnews.com