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 Monday morning.

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

Friday the Office of the Comptroller of the Currency shut down the bank citing fraud, causing members to panic. While many expressed relief they learned they had nothing to worry about others feared they would never be made whole.

 After a 122-year run, the First National Bank of Lindsay is no longer. It opened Monday under First Bank & Trust Co. based in Duncan. “Today has been a good day under the circumstances,” said Robert Petersen, CEO & President of 1st Bank & Trust.

Friday OCC closed the failed bank citing fraud---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.

FDIC senior resolution specialist Robert Brown said thEy spent the weekend counting money and examining accounts. “We have individuals that are looking at loans of the failed institutions, and we have others looking at the insured and uninsured deposits,” said Brown.

The majority of members were met with relief. 

“For most everybody, it’s going to be just as usual,” said Brown. Others like business owner Brandon Conner weren't so lucky. “I’ve lost $150,000 at this point,” said Brandon Conner, owner of C-Star Mfg., Inc.

The amount in his business account exceeded the insured $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,” said Conner.

In the weeks leading up to the bank's closure, Conner said he 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,” said Conner.

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 the phone up.,” said Conner. But he says later that day they learned about Simonton’s passing. “Clint Simonton committed suicide that evening he shot and killed himself,” said Conner.

Connor pressed for more answers, and each time he was old he had nothing to worry about by Lindsay banking officials. Conner learned that wasn’t the case. “Saturday evening I got a call from FDIC and they wanted to set up a meeting to discuss my losses,” said Conner.

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,” said Conner.

In the summer of 2024, First National Bank of Lindsay reported around $97 million in deposits. The FDIC said around seven million dollars exceeded insurance limits, though that number could change.

The City of Lindsay says it had accounts with the bank and was told it lost around four to five thousand dollars. It says it will be using several banks in the future. The OCC has referred the matter to the U.S. Department of Justice.

Members can head to the FDIC website and use the EDIE Calculator to determine how much of their deposit is insured.