Federal agency closes Oklahoma bank citing 'false and deceptive' records

Citing “false and deceptive bank records and other information suggesting fraud,” the Office of the Comptroller of the Currency on Friday closed the First National Bank of Lindsay.

The OCC then appointed the Federal Deposit Insurance Corporation as receiver.

The FDIC announced in a news release it entered into a purchase and assumption agreement with First Bank & Trust Co. Duncan to assume the insured deposits of the First National Bank of Lindsay.

Starting Monday, the First National Bank of Lindsay will reopen as a branch of First Bank & Trust Co. Depositors of the failed bank will automatically become depositors of First Bank & Trust Co., according to the FDIC. The insured deposits assumed by First Bank & Trust Co. will continue to be insured by the FDIC.

The FDIC said there is no need for customers to change their banking relationship to retain their deposit insurance coverage.

The FDIC estimates the failure of First National Bank of Lindsay will cost its Deposit Insurance Fund about $43 million.

The First National Bank of Lindsay reported about $108 million in assets.

The OCC said in a news release it acted after “identifying false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital.”

An independent bureau of the U.S. Department of the Treasury, the OCC supervises all national banks and federal savings associations, as well as federal branches and agencies of foreign banks.

The regulatory agency announced it also found that the First National Bank of Lindsay “was in an unsafe or unsound condition to transact business and that the bank’s assets were less than its obligations to its creditors and others.”

The OCC announced it is also referring the matter to the U.S. Department of Justice.

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.

The First National Bank of Lindsay is the second bank to fail in the nation this year, federal regulators announced. The last bank failure was Republic First Bank in Philadelphia on April 26. The last failure in Oklahoma —  the Freedom State Bank in Freedom — was in 2014.

This article originally appeared on Oklahoman: Federal agency closes Oklahoma bank citing 'false and deceptive' records