Intrust Bank is suing the former owners of a defunct Oklahoma-based bank for more than $17.3 million.
The suit claims that Intrust made several loans between 2007 and 2009 to Roger Brown, Suzanne Brown and other members of the Brown family. The Browns were longtime owners of Home National Bank of Blackwell, Okla., and its Arkansas City-based holding company, HNB Corp.
A call to Roger and Suzanne Brown's home in Scottsdale, Ariz., was not returned Friday.
A spokesman for Intrust declined to comment.
Home National Bank, which had branches in Arkansas City and Winfield, ran into trouble with regulators in 2008 and 2009. In 2008, the bank's regulator, the Office of the Comptroller of the Currency, entered into an agreement with the bank to change its practices, declaring that the bank had "engaged in unsafe and unsound banking practices relating to an unacceptably high level of problem assets, high concentrations of credit in commercial real estate, deficient earnings and inadequate oversight by management and the board."
According to the suit, Intrust made a series of loans to the Browns totaling nearly $1.5 million during 2007 and 2008.
Despite changes prescribed by the OCC, the bank continued to struggle. Home National Bank lost $56 million in 2009, according to bank filings.
In April 2009, Intrust made a loan of $16.2 million to Lisa Brown Kessler Revocable Trust that was personally guaranteed by Roger Brown and his daughter, Lisa Brown Kessler, according to documents filed with the suit.
According to the documents, the Browns pledged 13,896 shares of HNB stock as collateral.
In March, Home National Bank's board brought in a new management team to run the bank, and the Browns resigned from management.
But efforts to revive the bank weren't successful, and regulators pushed the bank into a government-assisted sale to RCB Bank of Claremore, Okla., in July.
RCB, which has a loan office in Wichita, assumed control of Home National Bank's assets.
Roger Mosier, president and CEO of RCB Bank, said RCB has no connection with the bank holding company, HNB, or the promise of collateral.