Frontier State Bank is headquartered in Oklahoma City and is the 16st largest bank in the state of Oklahoma. It is also the 1,083rd largest bank in the nation. It was established in 1975 and as of September of 2013, it had grown to 56 employees at 1 location. Frontier State Bank has a B health rating.
*** KNOW YOUR BANKER ***
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 "http://www.justice.gov/opa/pr/1999/October/477civ.htm" 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 "http://www.fdic.gov/bank/individual/enforcement/5218.html" 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 "http://extras.denverpost.com/news/news1031f.htm" 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 "http://www.tulsaworld.com/news/article.aspx?articleID=061112_To_A1_Guard69372" 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.
The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of September 30, 2013 Frontier State Bank had $34.92 million in non-current loans and owned real-estate with $79.05 million in equity and loan loss allowances on hand to cover it. This gives Frontier State Bank a Texas Ratio of 44.17% which is average. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for Frontier State Bank increased slightly from 33.80% as of September 30, 2012 to 44.17% as of September 30, 2013, resulting in a negative change of 30.69%. This indicates that the balance sheet and financial strength for Frontier State Bank has declined slightly in recent periods.
In the past year, Frontier State Bank has increased its total deposits by $22.44 million, resulting in 5.91% 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 $620.72 million in assets with $79.05 million in equity, resulting in a capitalization level of 12.74%, which is excellent.
|FDIC Certificate #||21978|
|Assets and Liabilities|
|Equity Capital||$72.17 million|
|Loan Loss Allowance||$6.88 million|
|Unbacked Noncurrent Loans||$21.07 million|
|Real Estate Owned||$13.85 million|
|Historic Data - September 2012|
|Equity Capital||$53.76 million|
|Loan Loss Allowance||$5.69 million|
|Unbacked Noncurrent Loans||$21.07 million|
|Real Estate Owned||$8.00 million|
|Profit Margin - Quarterly|
|Net Interest Margin||2.84%|
|Return on Assets||1.02%|
|Return on Equity||9.17%|
|Interest Income||$20.78 million|
Always verify rates and promotions with the bank or credit union. We are not Frontier State Bank, we are a rate comparison website and can not provide official rates or promotions.
|2.22%||$1k||$100k||10 Year CD|
|1.51%||$1k||$100k||5 Year CD|
|1.31%||$1k||$100k||3 Year CD|
|1.21%||$1k||$100k||2 Year CD|
|0.20%||$1k||$100k||12 Month CD|
|0.20%||$1k||$100k||18 Month CD|
|0.20%||$1k||-||18 Month IRA|
|Frontier State Bank Locations|
|Frontier State Bank||5100 South Interstate 35||Oklahoma City, OK 73129|