**First National Bank of Lindsay Shut Down, FDIC Takes Charge**

On Friday, the Office of the Comptroller of the Currency (OCC) closed the First National Bank of Lindsay, appointing the Federal Deposit Insurance Corporation (FDIC) as the receiver. To safeguard depositors, the FDIC has signed a purchase and assumption agreement with Duncan, Oklahoma-based First Bank & Trust Co. This agreement ensures that First Bank & Trust Co. will take over the insured deposits from the failed bank.

Effective Monday, October 21, 2024, the only branch of The First National Bank of Lindsay will reopen as a branch of First Bank & Trust Co., maintaining its normal business hours. Consequently, all customers of the closed bank will automatically become customers of First Bank & Trust Co., with their insured deposits remaining protected by the FDIC. Customers do not need to take any action to keep their deposit insurance coverage.

Throughout the weekend, customers will retain access to their insured funds through checks, ATMs, or debit cards, while existing checks will continue to be processed. Loan customers should keep making payments as normal. Regarding uninsured deposits, the FDIC will make 50 percent of these funds available to depositors starting Monday, with potential increases depending on asset recovery.

As of June 30, 2024, The First National Bank of Lindsay reported $107.8 million in total assets and $97.5 million in total deposits. Approximately $7.1 million of these deposits exceeded the FDIC insurance limits, though this figure is subject to change as the FDIC gathers further information.

Customers holding accounts over $250,000 are encouraged to contact the FDIC at 1-866-314-1744 for inquiries concerning their deposits. The contact line will operate over the weekend and throughout the following week, with extended hours. Starting Monday, depositors can also check their insurance coverage on the FDIC's "Is My Account Fully Insured?" webpage.

First Bank & Trust Co. has agreed to take on the insured deposits at a 6.67 percent premium and will purchase approximately $20 million of The First National Bank of Lindsay's assets. The FDIC will retain the remaining assets for future disposition. The estimated preliminary cost to the FDIC’s Deposit Insurance Fund (DIF) due to the bank’s failure is $43 million, subject to change as remaining assets are liquidated. Alleged fraud has been identified as the reason for the bank's closure and the subsequent impact on the DIF.

This closure marks the second bank failure in the United States this year, following the failure of Republic First Bank in Philadelphia, Pennsylvania, on April 26, 2024. In Oklahoma, the last bank failure occurred with The Freedom State Bank in Freedom on June 27, 2014.