FDIC announced Friday the closure of yet another insured bank, bringing the count up to 12 in the year's first half.
In its enforcement action, FDIC pointed to Freedom Bank's "rapidly deteriorating capital condition, [its] unacceptable capital restoration plan, and the inability of Bank management to return the Bank to a safe and sound condition" as causes for intervention.
The bank failed to meet an FDIC directive to restore itself to "adequately capitalized" status by the June 27 deadline.
To protect depositors, FDIC announced a purchase and assumption agreement with Alva State Bank & Trust Company, which has agreed to take on all of Freedom State Bank's $20.9 million in deposits and $17.7 million in assets. FDIC said it will hold on to the remaining assets for later disposition.
As a result of the closure, FDIC's Deposit Insurance Fund took a hit of $5.8 million, the agency estimates.
In addition to being the 12th closure year-to-date nationwide, Freedom State Bank was the second collapse in Oklahoma so far this year. The first was the Bank of Union in January.