KINGFISHER — State banking regulators closed First Capital Bank of Kingfisher on Friday, but the bank will reopen Saturday as a branch of F&M Bank of Edmond.
“The bank was closed due to exhaustion of capital funds as a result of significant loan losses,” Oklahoma Banking Commissioner Mick Thompson said in a statement issued by the agency.
F&M Bank agreed to pay a premium of 7.65 percent to assume First Capital's $46.1 million in assets. The Oklahoma Banking Department in an emergency meeting Friday appointed the Federal Deposit Insurance Corp. as receiver of the bank.
First Capital Bank customers may access their money over the weekend by writing checks or using ATM or debit cards, the FDIC said. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
The Kingfisher branch will offer drive-thru service beginning at 8 a.m. Saturday, and the main office will open Monday, the state Banking Department said.
The bank's assets plummeted to $46.1 million on March 31 from $119 million a year earlier. First Capital recorded a net loss of $573,000 in the first three months of this year, compared to a net loss of $126,000 in the same period last year.
The bank, which has 15 employees, was struggling with problem loans and its capital situation had deteriorated, according to its latest quarterly report filed with regulators.
The last FDIC-insured institution closed in Oklahoma was First National Bank of Davis on March 11, 2011.
First Capital Bank deposits will continue to be insured by the FDIC, and customers need not change their banking relationship to retain their deposit insurance coverage.
First Capital Bank customers should continue to use the existing branch until they receive notice from F&M Bank that it has completed systems changes to allow other F&M Bank branches to process their accounts as well, the FDIC said.
F&M Bank also agreed to buy about $40.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to its Deposit Insurance Fund will be $5.6 million.
Customers with questions about the bank closure can call the FDIC toll-free at (800) 591-2845. The phone number will be operational from 9 a.m. to 6 p.m. Saturday and noon to 6 p.m. Sunday.