As the town of Lindsay deals with the sudden closure of The First National Bank of Lindsay, details are emerging about the bank's questionable financial practices and subsequent takeover. According to News 9, the Office of the Comptroller of the Currency shut down the bank due to "false and deceptive bank records suggesting fraud." This caused the bank to lose capital and be unable to operate, leading to a referral of the case to the United States Department of Justice for further investigation.
The Federal Deposit Insurance Corporation acted quickly, and The First National Bank of Lindsay is now set to reopen under The First Bank and Trust Company of Duncan. As reported by KFOR, starting tomorrow, uninsured depositors will have access to 50% of their inaccessible funds, a figure that may increase as the Federal Deposit Insurance Corporation liquidates assets. All insured depositors already have access to their funds
The failed bank reported over $100 million in total assets and a shortfall of insured deposits. "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," according to a press release obtained by KFOR. In a more recent update, the Federal Deposit Insurance Corporation clarified that approximately $7.1 million of the deposits exceeded their insurance limits.
First Bank & Trust Co. of Duncan will facilitate the transition by entering into a purchase and assumption contract with the Federal Deposit Insurance Corporation. As part of the deal, the bank will assume insured deposits for a 6.67% premium and purchase approximately $20 million of the failed bank's assets, as stated by KOCO. Customers with deposits exceeding the Federal Deposit Insurance Corporation-protected amount of $250,000 have been advised to contact the Federal Deposit Insurance Corporation to discuss their accounts.
