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.