The FDIC announced in a news release it entered into a purchase and assumption agreement with First Bank & Trust Co. Duncan to assume the insured deposits of the First National Bank of Lindsay.

The First National Bank of Lindsay’s closure by a federal agency after allegations of fraud were announced has residents shocked.

The Office of the Comptroller of the Currency is referring the issue to the U.S. Department of Justice. The failure of the $107.8 million bank will also cost the Deposit Insurance Fund an estimated $43 million.