LINCOLN- Millions of dollars of fraudulent loans obtained by Lincoln businessman Aaron Marshbanks are starting to show up in the bottom line of Nebraska banks and savings and loans. A total of six financial institutions reported a loss during the 4th quarter of 2022. Western National Bank, based in Chester, and I3 Bank, based in Bennington, reported net losses for the entire year.

Kelly Lammers, director of the Nebraska Department of Banking and Finance, said Friday that he could not comment on individual banks but said he stands by earlier comments that despite more than $50 million in estimated fraudulent loans obtained by Marshbanks, Nebraska financial institutions are well capitalized to withstand such losses. “Generally, as an industry, Nebraska banking is incredibly strong,” Lammers said.

An attorney has been appointed to sort out Marshbanks’ estate and to determine whether assets are available to pay off the more than $50 million in claims made by 30 financial institutions against the estate. Officials have said there appears to be little equity built up in the more than 200 properties he had purchased, primarily in north Omaha and Lincoln, but also in Wyoming and New Orleans.

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