The matter first came to the attention of bank officials in February, and once the concern was raised the bank's safeguards that check theft were put into action, said Adam McQuiston, the bank's market president.
“Once there was the appearance of alleged embezzlement, it was a matter of internal investigation, which took no more than two days and within three days we knew who was involved and how much,” McQuiston said. “As soon as we uncovered the theft, we contacted authorities.”
However, McQuiston clarified that the alleged embezzlement has been isolated to one person and criminal charges will be filed in the near future.
All but $50,000 of the theft has been recovered through the bank's insurance, McQuiston said.
“The bank is not out of any money,” he said. “This had no bearing or impact on our clients or our client accounts.”
Although the situation unfolded months ago, bank officials couldn't talk about the embezzlement until the investigation was over and charges were expected to be filed.
Now that charges are likely pending, bank shareholders were alerted to the alleged embezzlement in a newsletter that was mailed a week ago.
First National Bank has about 125 employees in 11 offices in Montana, with its corporate headquarters in Missoula. The bank has some $284 million in assets.
“We are a small community bank and our employees are people who live in this community,” McQuiston said. “Ironically, in these uncertain financial times, we are well capitalized. We have no exposure or inordinate credit risk.
“We are in great financial position.”
Reporter Betsy Cohen can be reached at 523-5253 or at bcohen@missoulian.com.
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Don wrote on Sep 16, 2008 6:07 AM: