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Herring Bank will offer branch banking activities to customers of the former First State Bank of Altus beginning at 9 a.m. Saturday at the bank's local Wal-Mart Supercenter location, Thompson said. Herring Bank will also reopen the main offices of the former First State Bank of Altus on Monday morning, Thompson said.
First State Bank had been under supervision by the FDIC and Oklahoma Banking Commission for a year. The bank was cited for hazardous lending, inadequate Capital and earnings and an excessive level of bad loans.
Thompson said the Altus bank's problems were not indicative of the general health of Oklahoma's banking sector.
Roger Beverage, president of the Oklahoma Bankers Association, said First State Bank of Altus "is the exception to the rule."
"It's not the start of something big in Oklahoma, by a long shot," Beverage said.
Depositors of First State Bank of Altus can access their money by writing checks or using ATM or debit cards, Thompson said. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual, he said.
Deposits will continue to be insured by the Federal Deposit Insurance Corp.
"It's not the start of something big in Oklahoma, by a long shot," said Roger Beverage, president of the Oklahoma Bankers Association.
State Banking Commissioner Mick Thompson, whose agency closed First State Bank of Altus, said that bank's financial problems were not indicative of the general health of the Oklahoma banks.
Keith Geary, a banking consultant and CEO of Capital West Securities in Oklahoma City, said First State Bank of Altus' troubles were much worse than any other bank in the state.
"Thankfully, that should be it for Oklahoma unless you have an instance of fraud," Geary said.
A year ago, state and federal regulators placed First State Bank of Altus under supervision. In January, the FDIC and state Banking Commission issued a cease-and-desist order, citing the bank for hazardous lending, inadequate Capital and earnings and an excessive level of bad loans. The order established a time line for First State Bank to get its house in order.
At last month's state Banking Commission meeting, Thompson said officials were expecting to know more about the bank's status by the end of July - precisely when he closed the bank.
First State Bank made major loans to Quartz Mountain Aerospace, an aircraft manufacturer that has defaulted.
The Altus bank also loaned millions to an out-of-state residential development project that fell into bankruptcy.
The bank pinned its hopes on a bond issue aimed at raising money for Quartz Mountain Aerospace, litigation related to the real estate development and its ability to raise Capital through outside investors. But the bad loans, which drained the bank's Capital, doomed the bank.
"I'm not at all surprised," Beverage said.
First State Bank of Altus in March had a Texas ratio, a measure used to assess banks' creditworthiness, of 298.72 percent. The next-worst score among any Oklahoma bank was 67.73 percent.
"They were just in the whirlpool of too many non-accrual, non-performing assets," Geary said. "It was only a matter of time."
Thompson said the bank was closed due to exhaustion of Capital funds as a result of significant loan losses.
Herring Bank of Amarillo, Texas, purchased the failed bank's assets, and customers will be able to access their accounts through ATMs and at local branches, Thompson said.
The FDIC estimated the bank's failure will cost its deposit insurance fund $25.2 million.Fro
"It's not the start of something big in Oklahoma, by a long shot," said Roger Beverage, president of the Oklahoma Bankers Association.
State Banking Commissioner Mick Thompson, whose agency closed First State Bank of Altus, said that bank's financial problems were not indicative of the general health of the Oklahoma banks.
Keith Geary, a banking consultant and CEO of Capital West Securities in Oklahoma City, said First State Bank of Altus' troubles were much worse than any other bank in the state.
"Thankfully, that should be it for Oklahoma unless you have an instance of fraud," Geary said.
A year ago, state and federal regulators placed First State Bank of Altus under supervision. In January, the FDIC and state Banking Commission issued a cease-and-desist order, citing the bank for hazardous lending, inadequate Capital and earnings and an excessive level of bad loans. The order established a time line for First State Bank to get its house in order.
At last month's state Banking Commission meeting, Thompson said officials were expecting to know more about the bank's status by the end of July - precisely when he closed the bank.
First State Bank made major loans to Quartz Mountain Aerospace, an aircraft manufacturer that has defaulted.
The Altus bank also loaned millions to an out-of-state residential development project that fell into bankruptcy.
The bank pinned its hopes on a bond issue aimed at raising money for Quartz Mountain Aerospace, litigation related to the real estate development and its ability to raise Capital through outside investors. But the bad loans, which drained the bank's Capital, doomed the bank.
"I'm not at all surprised," Beverage said.
First State Bank of Altus in March had a Texas ratio, a measure used to assess banks' creditworthiness, of 298.72 percent. The next-worst score among any Oklahoma bank was 67.73 percent.
"They were just in the whirlpool of too many non-accrual, non-performing assets," Geary said. "It was only a matter of time."
Thompson said the bank was closed due to exhaustion of Capital funds as a result of significant loan losses.
Herring Bank of Amarillo, Texas, purchased the failed bank's assets, and customers will be able to access their accounts through ATMs and at local branches, Thompson said.
The FDIC estimated the bank's failure will cost its deposit insurance fund $25.2 million.