The First State Bank, Camargo, Oklahoma

The First State Bank, Camargo, Oklahoma, became the eighth ailing bank to be shut down nationwide in the new year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.1 million.

The First State Bank, Camargo, Oklahoma, was closed today by the Oklahoma State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank 7, Oklahoma City, Oklahoma, to assume all of the deposits of The First State Bank.

The sole branch of The First State Bank will reopen on Monday as a branch of Bank 7. Depositors of The First State Bank will automatically become depositors of Bank 7. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of The First State Bank should continue to use their existing branch until they receive notice from Bank 7 that it has completed systems changes to allow other Bank 7 branches to process their accounts as well.

This evening and over the weekend, depositors of The First State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2010, The First State Bank had approximately $43.5 million in total assets and $40.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, Bank 7 agreed to purchase essentially all of the assets.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-450-5668. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; and thereafter from 8:00 a.m. to 8:00 p.m., CST.

If you should have any further questions please do not do not hesitate to visit the FDIC webpage for The First State Bank.