EL RENO — Federal and state banking regulators said Friday afternoon they took over The Bank of Union, which has branches in El Reno, Union City and Oklahoma City.
Oklahoma Banking Commissioner Mick Thompson said The Bank of Union closed because of an exhaustion of capital funds resulting from bad loan losses.
The bank will reopen Saturday morning under an agreement with BancFirst, which assumed the deposits of the Bank of Union. BancFirst said depositors will be able to conduct banking business as usual, and can use their current checks and debit cards. Internet banking ATMs will continue to serve customers, and loan customers should continue to make their payments as usual.
“We are pleased to welcome our new customers to the BancFirst family,” David Rainbolt, CEO of BancFirst Corp., said in a statement. “Up front, we want to make sure they understand that their deposits are safe and accessible. More importantly, in the long run, El Reno and Union City are exactly the kind of communities that we like to serve all across Oklahoma.”
It's the first bank failure in Oklahoma since June 2012, when First Capital Bank of Kingfisher failed with estimated losses of $9.9 million.
As of Sept. 30, The Bank of Union had $331.4 million in total assets and $328.8 million in total deposits, according to the Federal Deposit Insurance Corp. In addition to assuming all of the deposits of the failed bank, BancFirst agreed to purchase about $225.5 million of The Bank of Union's assets. The FDIC will retain the remaining assets for a later sale.
The FDIC will continue to insure the banks' deposits. Customers who have questions about the transaction can call the FDIC at (800) 405-8251.