First Bank & Trust Co., Duncan, OK, Acquires Insured Deposits of The First National Bank of Lindsay, Lindsay, OK
WASHINGTON – The First National Bank of Lindsay, Lindsay, Okla., was closed today by the Office of the Comptroller of the Currency (OCC), which then 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. Duncan, Okla., to assume the insured deposits of The First National Bank of Lindsay.
The sole office of The First National Bank of Lindsay will reopen as a branch of First Bank & Trust Co. during its normal business hours on Monday, October 21, 2024. 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 there is no need for customers to change their banking relationship to retain their deposit insurance coverage.
All customers of The First National Bank of Lindsay will have access to their insured deposits. Over the weekend, customers of The First National Bank of Lindsay can access their deposits by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
In addition, based on the estimated recoveries of the failed bank assets, the FDIC will make 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 reported 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 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. This phone number will be operational this evening until 9:00 p.m., Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m., CT; on Sunday from 12:00 p.m. to 6:00 p.m., CT; Monday from 8:00 a.m. to 8:00 p.m., CT; and thereafter from 9:00 a.m. to 5:00 p.m., CT.
All customers who would like more information on today’s transaction can call the toll-free number or visit the FDIC’s website.
Beginning Monday, 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 FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $43 million. The estimate will change over time as the assets are sold. Alleged fraud caused the failure of the bank and cost to the DIF.
The First National Bank of Lindsay is the second bank to fail in the nation 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.
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