First National Bank of Lindsay closes, FDIC takes over deposits

On Friday, the First National Bank of Lindsay was closed by the Office of the Comptroller of the Currency (OCC), with the Federal Deposit Insurance Corporation (FDIC) appointed as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with First Bank & Trust Co., based in Duncan, Oklahoma, which will assume the insured deposits of the failing bank.

First National Bank of Lindsay’s sole office will reopen as a First Bank & Trust Co. branch on Monday, October 21, 2024, during its normal business hours. All depositors of the closed bank will automatically become depositors of First Bank & Trust Co. and their insured deposits will continue to be covered by the FDIC. Customers do not have to change their banking relationship to maintain deposit protection.

Over the weekend, customers will continue to have access to their insured deposits via check, ATM or debit card, and checks drawn at the bank will continue to be processed. Loan customers should continue to make payments as usual.

For uninsured deposits, the FDIC has announced that it will make 50 percent of these funds available to depositors beginning Monday, October 21, 2024, with the possibility of increasing this amount if assets of the insolvent bank are sold.

As of June 30, 2024, First National Bank of Lindsay reported total assets of $107.8 million and total deposits of $97.5 million. About $7.1 million of the deposits exceeded the FDIC’s insurance limits. However, this number may change as the FDIC collects more information from customers.

Customers with accounts over $250,000 are encouraged to contact the FDIC at 1-866-314-1744 for assistance in discussing their deposits. The phone line will operate with extended hours throughout the weekend and into next week.

Starting Monday, depositors with accounts over $250,000 can visit the FDIC’s “Is My Account Fully Insured?” page. Website to check your insurance coverage, HERE.

First Bank & Trust Co. has agreed to assume the insured deposits at a premium of 6.67 percent and acquire approximately $20 million in assets of First National Bank of Lindsay. The FDIC will retain the remaining assets for future sale.

The preliminary cost of the bank failure to the FDIC’s Deposit Insurance Fund (DIF) is estimated at $43 million. The final cost may vary as the FDIC sells the remaining assets. Alleged fraud is cited as the reason for the bank’s closure and the resulting costs for the DIF.

The closure of the First National Bank of Lindsay marks the second bank failure in the United States this year. The most recent occurred when Republic First Bank in Philadelphia, Pennsylvania failed on April 26, 2024. In Oklahoma, the most recent bank failure occurred at Freedom State Bank in Freedom, Oklahoma, on June 27, 2014.