Bank of Union, a small mortgage lender based in Oklahoma, has been closed by Oklahoma's banking commissioner and its assets turned over to the Federal Deposit Insurance Corp. (FDIC), the Associated Press reported on Friday.
BancFirst, based in Oklahoma City, has agreed to assume Bank of Union's deposits and to buy $225.5 million of the failed bank's assets, the AP reports. The remaining assets will be held by the FDIC and will be sold at a later date.
The bank reportedly failed due to significant loan losses and the exhaustion of capital funds.
Bank of Union has one branch in Oklahoma City and another one about 30 miles away in El Reno, Okla. It had $331.4 million in assets and $328.8 million in deposits as of Sept. 30, the report states.
The bank's failure is expected to cost the deposit insurance fund $70 million.
For more, check out the AP report.