The federal Office of the Comptroller of the Currency announced the closure of the First National Bank of Lindsay in South Central Oklahoma on Friday.
Officials from the office said they found false and deceptive bank records, and information that suggested fraud and revealed losses in the bank’s capital, according to a news release from the federal agency.
“The OCC also found that the bank was in unsafe or unsound condition to transact business and that the bank’s assets were less than its obligations to its creditors and others,” according to the release.
The office appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the Lindsay bank, and the FDIC announced the First Bank & Trust Co. in Duncan will take over the bank’s insured deposits.
Depositors of the Lindsay bank will immediately become depositors of First Bank & Trust Co. Officials noted the FDIC will still cover the deposits, “so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” according to a FDIC news release.
For Lindsay bank customers, they will have access to their insured deposits, checks drawn on the bank will be processed and loan customers should make their usual payments, according to the release. FDIC officials noted people with accounts in excess of $250,000 should call the corporation at 1-866-314-1744 to make an appointment to talk about their deposits.
For uninsured funds, the FDIC made 50% of them available to depositors yesterday, and the amount could rise as the assets of the bank are sold.
Earlier this year, the First National Bank of Lindsay reported assets totaling about $107.8 million and deposits totaling $97.5 million, according to the release.
The FDIC estimates the failure will cost the corporation’s Deposit Insurance Fund about $43 million.
This is the second bank to fail in the U.S. this year. The last bank failure in Oklahoma was about 10 years ago.
This report was produced by the Oklahoma Public Media Exchange, a collaboration of public media organizations. Help support collaborative journalism by donating at the link at the top of this webpage.
