LINDSAY, Okla. (OBV) – Federal officials shut down The First National Bank of Lindsay on Friday for alleged fraud. The insured deposits of the bank’s customers have been acquired by another Oklahoma bank.
The Office of the Comptroller of the Currency (OCC) closed the bank after finding “false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital,” according to OCC officials.
OCC officials also determined that the Lindsay bank was in an unsafe or unsound condition to make business transactions and that the bank’s assets were less than what it owed to creditors.
The Federal Deposit Insurance Corporation (FDIC) was appointed receiver of the failed bank, tasking the FDIC with selling/collecting the bank’s assets and settling its debts, including claims for deposits in excess of the insured limit.
First National reported approximately $108 million of total assets.
First Bank & Trust Co. of Duncan, Okla., acquired all of the insured deposits and certain First National assets after entering into a purchase and assumption agreement with the FDIC.
FDIC officials published a statement online assuring First National’s depositors that their money was safe.
“No one lost any insured money on deposit as a result of the closure of this bank. The insured balance in your deposit account(s) was transferred to First Bank & Trust Co.,” FDIC officials said.
But only up to $250,000 in a depositor’s account(s) is insured.
FDIC officials advise depositors with more than the insured limit of $250,000 in their account(s) to visit the FDIC’s secure Failed Bank Customer Service Center (FBCSC) to review their account summary statement that details their deposit insurance determination.
“If the total of your related deposit accounts DOES NOT exceed $250,000, you do not need an appointment with the FDIC. Please note Individual Retirement Account (IRA) deposits are separately insured up to $250,000,” FDIC officials said.
First National of Lindsay customers can still use their same checks, their ATM/debit card will continue to work and their direct deposits will continue as usual.
“The insured balance in your account(s), including checking, savings, money markets, certificates of deposit, and retirement accounts, has been transferred to First Bank & Trust Co. and will be available for transactions daily,” FDIC officials said.
OCC officials referred the investigation into First National to the U.S. Department of Justice.
