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Overview / Commentary
5100 S. I-35 Service Road
Oklahoma City, OK 73129

Frontier State Bank is headquartered in Oklahoma City and is the 22nd largest bank in the state of Oklahoma. It is also the 1,202nd largest bank in the nation. It was established in 1975 and as of September of 2017, it had grown to 52 employees at 1 location. Frontier State Bank's CD rates are 78% higher than the national average, and it has a C+ 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 "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.


Health Grade Components

FDIC Certificate #21978
Year Established1975
Primary RegulatorFDIC
Profit Margin
Return on Assets - YTD-0.17%
Return on Equity - YTD-1.55%
Annual Interest Income$18.1MM
Assets and Liabilities
AssetsQ3 2017vs Q3 2016$607.3MM$650.4MM
LoansQ3 2017vs Q3 2016$407.5MM$405.8MM
DepositsQ3 2017vs Q3 2016$390.3MM$432.8MM
Equity CapitalQ3 2017vs Q3 2016$69.2MM$70.7MM
Loan Loss AllowanceQ3 2017vs Q3 2016$6.3MM$6.7MM
Unbacked Noncurrent LoansQ3 2017vs Q3 2016$28.4MM$36.9MM
Real Estate OwnedQ3 2017vs Q3 2016$1.0MM$2.9MM
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Frontier State Bank CD Rates

2.30%*$100k*-60 Month CD
OTHER TIERS: 2.10% $1k - $100k
2.20%*$100k*-48 Month CD
OTHER TIERS: 2.00% $1k - $100k
2.10%*$100k*-36 Month CD
OTHER TIERS: 1.90% $1k - $100k
1.90%*$100k*-24 Month CD
OTHER TIERS: 1.70% $1k - $100k
1.70%*$100k*-15 Month CD
OTHER TIERS: 1.50% $1k - $100k
1.60%*$100k*-12 Months CD
OTHER TIERS: 1.40% $1k - $100k

Frontier State Bank IRA Rates

1.80%*$100k*-18 Months IRA
OTHER TIERS: 1.60% $1k - $100k

Frontier State Bank Locations
Frontier State Bank5100 South I-35 Service RoadOklahoma City, OK 73129