Jurors reached the verdict yesterday at a civil trial in federal court in Brooklyn.
American victims of terrorist attacks in Israel had sued Arab Bank in 2004. They accused the institution of knowingly funnelling cash payments from Hamas to the families of bombers from Gaza and the West Bank.
Arab Bank executives testified that they weren't aware that the bank had any ties to extremists.
The case marked the first time a bank has faced a trial under the Anti-Terrorism Act. The law allows victims of US-designated foreign terrorist organisations to seek compensation.