In a significant move, financial regulators have closed the First National Bank of Lindsay in Oklahoma, marking the second bank failure in the U.S. this year. The Office of the Comptroller of the Currency (OCC) took this action after uncovering misleading bank records and signs of fraud that had severely impacted the bank’s financial stability.
The OCC determined that the bank was not in a sound condition to operate, revealing that its assets fell short of its obligations to creditors. As a result, the case has been referred to the U.S. Department of Justice for further investigation.
The Federal Deposit Insurance Corporation (FDIC) acted swiftly, securing the bank’s assets before the weekend. While all insured deposits were transferred to First Bank & Trust Co. in Duncan, Oklahoma, approximately $7.1 million in uninsured deposits were left behind. The bank had reported total deposits of $97.5 million and assets of $107.8 million.
Earlier this year, the first bank to fail was Republic Bank in Philadelphia, which struggled with significant financial losses and inadequate capital reserves. This recent closure follows a troubling trend from 2023, which saw the collapse of several notable banks, including Silicon Valley Bank, Signature Bank, and First Republic Bank.
