Jan 27 - The Bank of Union, El Reno, Okla., has been closed by the Oklahoma State Banking Department, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with BancFirst, Oklahoma City, Okla., to assume all of the deposits of The Bank of Union.
As of Sept. 30, 2013, The Bank of Union had approximately $331.4 million in total assets and $328.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, BancFirst agreed to purchase approximately $225.5 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
Customers with questions about the transaction should call the FDIC toll-free at 800-405-8251. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/bankofunion.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $70 million. Compared to other alternatives, BancFirst's acquisition was the least costly resolution for the FDIC's DIF. The Bank of Union is the second FDIC-insured institution to fail in the nation this year, and the first in Oklahoma. The last FDIC-insured institution closed in the state was First Capital Bank, Kingfisher, on June 8, 2012.