Newspaper article THE JOURNAL RECORD

Banks in Duncan, Waukomis Closed by Regulators

Newspaper article THE JOURNAL RECORD

Banks in Duncan, Waukomis Closed by Regulators

Article excerpt

Oklahoma's 21st and 22nd bank failures of 1988 occurred Thursday, when assets and deposits of state-chartered banks in Duncan and Waukomis were purchased by private investor groups.

First Bank & Trust Co. in Duncan, and Waukomis State Bank were both closed by Oklahoma Bank Commissioner Wayne Osborn.

First Bank & Trust, with assets of about $46.1 million, was closed when management failed to meet a $6 million capital call. The bank was insolvent by about $3.8 million at its last examination in September, Osborn said.

The bank's two offices will open at 9 a.m. today under the same name with a new state charter, said the Federal Deposit Insurance Corp., receiver for the failed bank. All customers of the bank are fully protected.

LaWayne Jones, a Duncan oil producer and rancher, fully capitalized the bank with $3 million, said a press release issued by his attorney.

The bank's management was replaced in October when regulators expressed concern, Osborn said. The bank had suffered from about $9 million in loan losses since 1984, he said, and he blamed the failure on ineffective and weak lending practices by management.

Osborn said the FDIC earlier denied a $14 million open bank assistance request by management.

John P. Gover, a banker and rancher from Altus who joined First Bank & Trust in October, will serve as chairman, chief executive officer and president of the new bank, the attorney said.

Gover was president and chief executive officer of the National Bank of Commerce in Altus for 23 years, and was most recently chairman of Altus Airlines.

The new version of First Bank & Trust paid the FDIC a reverse premium of $8.5 million to assume about $45.2 million in 9,200 deposit accounts and to purchase $44. …

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