The Oklahoma State Banking Department has closed Bank of Union in El Reno.

Acting as receiver for the $331 million-asset failed bank, the Federal Deposit Insurance Corp. entered into an agreement on Friday to sell $225.5 million in assets and $328.8 million in deposits to BankFirst (BANF) in Oklahoma City. The FDIC said it will retain the failed bank's remaining assets for later disposition.

The failure — the second so far this year — is expected to cost the Deposit Insurance Fund $70 million.

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