The First National Bank of Lindsay in Lindsay, Okla., was shut down this week by the Office of the Comptroller of the Currency (OCC).
Alleged fraud caused the failure of the bank, according to the OCC. The OCC appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
To protect depositors, the FDIC entered into a purchase and assumption agreement with First Bank & Trust Co. in Duncan, Okla. First Bank & Trust will assume the insured deposits of The First National Bank of Lindsay.
The sole office of The First National Bank of Lindsay reopened on Monday Oct. 21 as a branch of First Bank & Trust Co.
All customers of The First National Bank of Lindsay will have access to their insured deposits. Going forward, depositors of the failed bank will automatically become depositors of First Bank & Trust Co. The insured deposits assumed by First Bank & Trust Co. will continue to be insured by the FDIC, so customers do not need to change their banking relationship to retain their deposit insurance coverage.
In addition, the FDIC made 50 percent of uninsured funds available to those depositors on Monday, October 21, 2024. This amount could increase as the FDIC sells the assets of the failed bank.
As of June 30, 2024, The First National Bank of Lindsay had $107.8 million in total assets and $97.5 million in total deposits. Approximately $7.1 million of the deposits exceeded FDIC insurance limits; this amount is likely to change once the FDIC obtains additional information from customers.
Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-314-1744 to set up an appointment to discuss their deposits.
Depositors of The First National Bank of Lindsay with more than $250,000 at the bank may visit the FDIC’s webpage “Is My Account Fully Insured?” to determine their insurance coverage.
First Bank & Trust Co. agreed to assume the insured deposits for a 6.67 percent premium. It will also purchase approximately $20 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The bank failure will cost the FDIC’s Deposit Insurance Fund (DIF) about $43 million.
The First National Bank of Lindsay is the second bank in the U.S. to fail this year. The last bank failure was Republic First Bank, in Philadelphia, Penn. on April 26, 2024. The last failure in Oklahoma was The Freedom State Bank, in Freedom, Okla. on June 27, 2014.