Bank failure in Lindsay leads to FDIC intervention

LINDSAY, Okla. ( KFOR ) — Residents in the town of Lindsay are facing a rare bank closure after The First National Bank of Lindsay closed its doors on Friday.

Under the direction of the FDIC protecting depositors, officials expect to re-open the bank as The First Bank and Trust Company of Duncan.

The FDIC says, there is a purchase agreement on the table with uninsured depositors having 50% of access funds available by Monday, October 21. The amount could see an increase while the FDIC sells the assets.

Insured depositors of The First National Bank of Lindsay will already have access to their funds.

According to the press release, “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.”

FDIC officials say customers with accounts that are in excess of $250,000 should contact the FDIC and set up an appointment discussing their deposits at 1-866-314-1744.

The press release states, the bank will purchase approximately $20 million of failed bank assets while also assuming insured deposits for a 6.67% premium.

The cost of the failure is estimated at $43 million.

Officials with the FDIC says this is the second bank to fail in the country this year. The last bank failure in Oklahoma occurred at the Freedom State Bank on June 27, 2014.

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