First National Bank of Lindsay in Oklahoma was closed by the Office of the Comptroller of the Currency.
The Federal Deposit Insurance Corp. took over the $107.8 million-asset bank and sold its only branch and its insured deposits to First Bank & Trust Co. in Duncan, Okla.
The OCC closed the bank “after identifying false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital,” the agency said in a press release. “The OCC also found that the bank was in an unsafe or unsound condition to transact business and that the … assets were less than its obligations to its creditors and others.”
The agency said it will refer the matter to the Department of Justice.
The FDIC will make half of uninsured funds available to depositors on Monday, though the amount could increase as the agency sells the bank’s remaining assets.
The FDIC estimated that the failure will cost its Deposit Insurance Fund $43 million; the amount could change over time as assets are sold.
First National Bank of Lindsay had $97.5 million. About $7.1 million of the deposits exceeded FDIC insurance limits.