Oklahoma Bank Shut Down by OCC Amid Investigation

The Office of the Comptroller of the Currency (OCC) closed The First National Bank of Lindsay, located in Lindsay, Oklahoma, on Friday, appointing the FDIC as the receiver. As of June 30, the bank had reported around $107.8 million in total assets and $97.5 million in deposits. About $7.1 million of these deposits exceeded FDIC insurance limits, though this figure may change as the FDIC gathers more information from customers.

The OCC stated that it took action after uncovering false and misleading bank records and other indications of fraud, which led to the depletion of the bank’s capital. The matter has been referred to the Justice Department for further investigation.

The FDIC has entered into a purchase and assumption agreement with First Bank and Trust, based in Duncan, Oklahoma, to assume all insured deposits from The First National Bank of Lindsay. The Lindsay branch will reopen on Monday as a branch of First Bank and Trust.

For uninsured depositors, the FDIC will immediately make 50% of their funds available, with the potential for a higher payout as the failed bank’s assets are sold.