It's Bank Failure Friday!! (On Saturday)

I am not sure how I missed the failure of the The First National Bank of Lindsay (Oklahoma), the second bank failure of the year.  That was on October 18.  My bad.

What is interesting is that it appears that there was a strong possibility of fraud:

More than a year after a string of regional bank failures shook confidence in the industry, the abrupt failure of First National Bank of Lindsay, Oklahoma, on Friday is raising questions about whether the failure was due to idiosyncratic accounting errors at the bank or broader economic forces that could affect other institutions.
………

While state banking groups say the demise of the $107.8 million-asset firm was attributable to issues at the bank alone, the murky details of the First National CEO's departure and regulators' allegations of fraud are raising alarms for some bank industry experts.

The Office of the Comptroller of the Currency closed First National just before the weekend after the agency said it found "false and deceptive bank records" suggesting fraud and which ultimately drained the bank's capital reserves.

………

While the bank was relatively small for the industry, the Federal Deposit Insurance Corp. estimates the failure could cost the agency's Deposit Insurance Fund more than $43 million to wind down. In addition to the hefty cost, experts say discrepancies in the bank's accounting filings have left questions unanswered.

………

Another issue is the reported departure of the bank's then-CEO Danny Seibel just before the bank's failure. American Banker attempted to reach Seibel for comment but was unsuccessful.

Garvin County Sheriff Jim Mullett — whose district includes Lindsay — said Seibel left the bank weeks before the firm went bust, but that he had no criminal record or past run-ins with law enforcement.

Beverage said he heard about the CEO's departure following a federal regulatory exam.

"I first got word about two weeks ago [about the CEO departing] shortly after [what] I believe was the OCC exam," he said. "I haven't gotten the final word on who was the regulatory authority that was doing the exam."

Well, that seems completely above board and honest.

………

Byrne speculated that commercial real estate troubles could be playing a part. FDIC officials have said repeatedly the industry continues to face headwinds in the areas of credit, with rising non-current loan ratios, especially in consumer real estate.

Gee, ya think?

Also, in credit union land, Alliance Credit Union of Florida was shut down in Gainesville.  

No details in that case.

What does this all mean?

¯\_(ツ)_/¯