Bank In Lindsay Reopens Under New Name After Fraud Closure

A failed bank in Lindsay, forced by federal regulators to close Friday, reopened under a new name on Monday.

The FDIC was at the bank throughout the weekend closure and was on hand this week, visiting with concerned members.

On Friday, the Office of the Comptroller of the Currency shut down the bank, citing fraud, which caused members to panic. Many felt relieved after learning they had nothing to worry about, while others feared they would never be made whole.

After a 122-year run, The First National Bank of Lindsay is no more. It opened Monday as First Bank & Trust Co., based in Duncan.

“Today has been a good day under the circumstances,” said Robert Petersen, CEO and president of 1st Bank & Trust.

The OCC closed the failed bank on Friday, citing fraud and appointing the FDIC as the receiver.

“I was asked to come here and participate in the failure of First National Bank of Lindsay,” said FDIC Senior Resolution Specialist Robert Brown.

Brown said they spent the weekend counting money and examining accounts.

“We have individuals looking at loans of the failed institution, and we have others looking at the insured and uninsured deposits,” Brown said.

Most members were met with relief.

“For most everybody, it’s going to be just as usual,” Brown said.

Others, like business owner Brandon Conner, weren't so lucky.

“I’ve lost $150,000 at this point,” said Conner, who owns C-Star Mfg., Inc. The amount in his business account exceeded the insured limit of $250,000.

“We have to have a large amount of funds in our account to be able to operate our business. We are a multi-million-dollar business,” Conner said.

In the weeks leading up to the bank's closure, Conner and other members grew concerned.

“A guy stopped by my office and said, 'Hey, I don’t know what’s going on down there, but there’s something going on at the bank,'” Conner said.

Conner and his wife questioned the bank's interim president, Clint Simonton.

“He assured her, he said, 'Jess, there’s nothing at all going on at the bank. There are no federal people down here; the bank is solid. Everything is good, and your stuff is fantastic.' She hung up the phone,” said Conner.

However, he says they learned later that day about Simonton’s passing.

“Clint Simonton committed suicide that evening; he shot and killed himself,” said Conner.

Conner pressed for more answers, and each time he was told by Lindsay banking officials that he had nothing to worry about. Conner learned that wasn’t the case.

“Saturday evening, I got a call from the FDIC, and they wanted to set up a meeting to discuss my losses,” Conner said.

He says he and his wife are still in disbelief and are unsure how they'll move forward.

“It’s devastating. It’s devastating. For one, it was our 28th wedding anniversary. I can’t tell you; I started crying, I did. And I’ve been sick to my stomach ever since,” Conner said.

This summer, First National Bank of Lindsay reported around $97 million in deposits. The FDIC said about $7 million exceeded insurance limits, though that number could change.

The City of Lindsay said it had accounts with the bank. The FDIC estimates the city lost $4,000 to $5,000—but that number could increase or decrease. 

Moving forward, the city will utilize two banks. 

The OCC has referred the matter to the U.S. Department of Justice.

Members can visit the FDIC website and use the EDIE Calculator to determine the amount of their deposit that is insured.