The First National Bank of Lindsay was forced to cease operations after the Office of the Comptroller of the Currency (OCC) found the institution to be in a perilous financial position.
The Oklahoma-based First National Bank of Lindsay was shut down on Oct. 18 after the OCC identified “false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital,” the agency said in an Oct. 18 statement. The OCC is a bureau under the Treasury tasked with regulating and supervising all national banks to ensure that they operate securely.
The OCC found the financial institution to be 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,” according to the statement.
The agency appointed the Federal Deposit Insurance Corp. (FDIC) as the receiver for the bank, which then entered into a purchase agreement with the First Bank & Trust Co. to take over the troubled institution, the FDIC said in an Oct. 18 statement.
“No advance notice is given to the public when a financial institution is closed,” the FDIC said in a separate statement.
As a result, the only office of First National Bank of Lindsay will reopen as a branch of First Bank & Trust Co. on Oct. 21. Depositors of First National will automatically become depositors of First Bank.
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