Lindsay First National Bank in Lindsay, Oklahoma was shut down by the Office of the Comptroller of the Currency (OCC) this week.
©Shutterstock
According to the OCC, the alleged fraud led to the bank’s failure. The OCC appointed the Federal Deposit Insurance Corporation (FDIC) as trustee.
To protect depositors, the FDIC has entered into a sales and underwriting agreement with First Bank & Trust Co. of Duncan, Okla., under which First Bank & Trust will assume the insured deposits of First National Bank of Lindsay.
Lindsay First National Bank’s only office reopened on Monday, Oct. 21, as a branch of First Bank and Trust Company.
All customers of The First National Bank of Lindsay have access to insured deposits. From now on, depositors of failed banks automatically become depositors of First Bank and Trust Company. Insured deposits written by First Bank & Trust Company will continue to be insured by the FDIC, so customers will not need to change their banking relationship. Maintain deposit insurance coverage.
Additionally, the FDIC provided 50 percent of the uninsured funds to these depositors on Monday, October 21, 2024. This amount could increase further as the FDIC sells assets of failed banks.
As of June 30, 2024, Lindsay First National Bank had total assets of $107.8 million and total deposits of $97.5 million. Approximately $7.1 million of the deposits exceeded FDIC insurance limits. This amount is subject to change as the FDIC receives additional information from customers.
If you have an account with more than $250,000, please contact the FDIC toll-free at 1-866-314-1744 to schedule an appointment to discuss your deposit.
Depositors with deposits of $250,000 or more at First National Bank of Lindsay can visit the FDIC’s web page, “Is My Account Fully Insured?” To determine insurance coverage.
First Bank & Trust Co. agreed to underwrite insured deposits at a premium of 6.67 percent. It also plans to purchase approximately $20 million in assets from the bankrupt bank. The FDIC will hold the remaining assets for later disposition.
The bank failure will result in a loss of approximately $43 million to the FDIC’s Deposit Insurance Fund (DIF).
Lindsay First National Bank becomes the second U.S. bank to fail this year. The last bank to fail was Republic First Bank in Philadelphia, Pennsylvania. The last bankruptcy in Oklahoma was Freedom State Bank in Freedom, Oklahoma, on June 27, 2014.
