FDIC announced the closure of an Oklahoma bank over the weekend, marking the first insured collapse in the Sooner State in more than a year and a half.
The Bank of Union in El Reno was forced to shutter its doors Friday by the Oklahoma State Banking Department, which appointed FDIC as receiver. To protect depositors, FDIC announced a purchase and assumption agreement with Oklahoma City’s BancFirst, which will assume all of the failed bank’s $328.8 million in deposits (as of Q3 2013) and $225.5 million of its assets.
FDIC will retain the remaining $105.9 million in assets for later disposition, the agency said.
The Bank of Union’s closure will cost the Deposit Insurance Fund approximately $70.0 million, FDIC estimates.
The collapse was the second one in the United States so far in 2014 and the first one in Oklahoma since June 2012.