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5100 South Interstate 35
Oklahoma City, OK 73129

Frontier State Bank is headquartered in Oklahoma City and is the 14st largest bank in the state of Oklahoma. It is also the 1,047th largest bank in the nation. It was established in 1975 and as of March of 2014, it had grown to 56 employees at 1 location. Frontier State Bank has a B health rating.

Reviews (1)

* Joseph D. McKean, Jr. / JD McKean, Jr. *


It appears that Joseph D. McKean, Jr., M.D., the majority shareholder and chairman of the board of Frontier State Bank (and the majority shareholder and chairman of the board of affiliated Washita State Bank), has a bit of a past, to wit:

A)   "WASHINGTON, D.C. -- An Oklahoma-based emergency physician billing company and its physician founder will pay the United States and 28 states $15 million to resolve allegations of false billings to the Medicare, Medicaid, and TRICARE programs, as well as the Federal Employees Health Benefits Program (FEHBP)."

as reported in the "" webpage.

B)   "This is a civil money penalties proceeding brought by the Federal Deposit Insurance Corporation ("FDIC") against Joseph D. McKean, Jr. ("Respondent"), the chairman of the board of directors of Frontier State Bank, Oklahoma City, Oklahoma ("Bank"), pursuant to its authority under section 8(i) of the Federal Deposit Insurance Act ("FDI Act"), 12 U.S.C. § 1818(i), for alleged violations of Regulation O of the Board of Governors of the Federal Reserve System ("Regulation O").

The alleged misconduct includes two types of improper payments, in violation of Regulation O, as discussed by the Administrative Law Judge ...

A hearing was held before Administrative Law Judge Arthur L. Shipe ("ALJ") ... Before entering the courtroom to commence the proceeding, Respondent requested permission to make a video recording of the proceeding.  The ALJ refused, but encouraged Respondent to raise the issue as a preliminary matter.  Instead, Respondent evaded security, brought his camera into the courtroom, and commenced making a video recording of the proceeding.  During the FDIC Enforcement Counsel's opening statement, the ALJ noticed the operation of the video equipment and requested its removal.  Respondent asked for a federal court to rule on the matter, which the ALJ interpreted as a request for a continuance and denied ... After stating, "If the equipment goes, I go," Respondent walked out of the courtroom ... The hearing proceeded without the Respondent.

The ALJ issued a Recommended Decision ... proposing that a $100,000 penalty be assessed against the Respondent.  No exceptions were filed to the ALJ's Recommended Decision ...

Accordingly, the Board, having considered the entire record in this proceeding, taking into account the appropriateness of the penalty with respect to the size of financial resources and good faith of Respondent, the gravity of the violations, and such other matters as justice may require, it is hereby ORDERED that by reason of his multiple and serious violations of regulations, as set forth above, the Respondent is assessed a civil money penalty of $100,000."

as reported in the "" webpage.

C)     "Camp Developer Tangled With the FDIC"

"The developer of a proposed Christian camp near Leadville accepted illegal loans and fees as chairman of an Oklahoma bank, a revelation that should be a warning to local officials, critics contend.  Dr. J.D. McKean Jr. was penalized $100,000 by the Federal Deposit Insurance Corp. for banking violations five years before he was fined $15 million for overbilling Medicare and Medicaid in a more publicized case  ... the bank's directors voted to pay McKean a "consulting fee" of $10,000 per month, an amount that exceeded the salaries of the bank's full-time officers and dwarfed the $500 paid to the other directors, according to court documents.

In addition, McKean accepted or cosigned on more than $400,000 in loans that the FDIC said violated Federal Reserve Board Regulation O. That regulation "prevents the bank from becoming the owner's own personal piggy bank," said FDIC spokesman David Barr.

The board eventually stopped paying the consulting fee and required McKean to pay back $90,000. But in a secret deal cut during the same board meeting and noted in "special minutes" that were not turned over to the FDIC, the board then awarded McKean $110,150 as illegal interest on six of his demand-deposit accounts.

"I find especially egregious his attempted deception of the FDIC in order to continue receiving consulting fees in the form of interest payments," Administrative Law Judge Arthur Shipe wrote."

as reported in the "" webpage.

D)    "Judges Say Background Checks, Oversight Needed to Protect Wards"

"Earlier this year, McKean was appointed by a Tulsa judge as financial guardian for a woman suffering from dementia, records show.  While those involved with the case could not speak on the record, it's likely that attorneys and judges involved had no idea about McKean's past ... 

The Justice Department joined a civil lawsuit against McKean and his company that claimed he devised a scheme to bill the government for a higher service than doctors had rendered ... U.S. District Judge Robin Cauthron ruled that the government was entitled to recover damages under the false claims act.  "The court finds it abundantly clear, from the testimony, writings, and videotaped presentations of Dr. McKean, that his intent was to get what he could by fair means or foul," Cauthron states in her ruling."

as reported in the "" webpage.

Makes one wonder of any additional instances not reported to, or prior to the advent of, the internet; as so often said in MNF, you make the call.


Data for Q1 2014

Institution Health


Texas Ratio


The Texas Ratio is an indicator of how much capital a bank has available compared to the total value of loans considered at risk. As of March 31, 2014 Frontier State Bank had $31.24 million in non-current loans and owned real-estate with $77.55 million in equity and loan loss allowances on hand to cover it. This gives Frontier State Bank a Texas Ratio of 40.29% which is average. Any bank with a Texas Ratio near or greater than 100% is considered at risk.

Texas Ratio Trend


The Texas Ratio for Frontier State Bank increased slightly from 33.50% as of March 31, 2013 to 40.29% as of March 31, 2014, resulting in a negative change of 20.26%. This indicates that the balance sheet and financial strength for Frontier State Bank has declined slightly in recent periods.

Deposit Growth


In the past year, Frontier State Bank has increased its total deposits by $48.26 million, resulting in 12.44% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Frontier State Bank has shown is excellent.



Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Frontier State Bank has $652.43 million in assets with $77.55 million in equity, resulting in a capitalization level of 11.89%, which is excellent.

Institution Statistics

FDIC Certificate #21978
Year Established1975
Primary RegulatorFDIC
Assets and Liabilities
Assets$652.43 million
Loans$400.33 million
Deposits$436.18 million
Equity Capital$69.93 million
Loan Loss Allowance$7.62 million
Unbacked Noncurrent Loans$20.59 million
Real Estate Owned$10.65 million
Historic Data - March 2013
Assets$593.70 million
Equity Capital$59.54 million
Loan Loss Allowance$6.74 million
Unbacked Noncurrent Loans$20.59 million
Real Estate Owned$6.77 million
Profit Margin - Quarterly
Net Interest Margin2.51%
Return on Assets0.79%
Return on Equity7.63%
Interest Income$6.66 million
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Frontier State Bank CD Rates

2.22%$1k$100k10 Year CD
1.51%$1k$100k5 Year CD
1.31%$1k$100k3 Year CD
1.21%$1k$100k2 Year CD
0.20%$1k$100k12 Month CD
0.20%$1k$100k18 Month CD

Frontier State Bank IRA Rates

0.20%$1k-18 Month IRA

Frontier State Bank Locations
Frontier State Bank5100 South Interstate 35Oklahoma City, OK 73129