- Key insight: Old Glory Bank was co-founded in 2022 by Dr. Ben Carson, former Oklahoma Governor Mary Fallin-Christensen and radio/TV host Larry Elder, among other prominent conservatives.
- Supporting data: The bank has struggled to turn a profit despite growth in deposits from $10 million in 2023 to over $245 million at the end of 2025.
- Forward look: Under the FDIC's order, the bank's growth prospects are severely limited, and it is unclear if it will continue as a going concern.
Old Glory Bank, a Republican-led financial institution that touts itself as "pro-America," was slapped by regulators with a formal corrective action directive because its capital dropped below minimum requirements.
The Federal Deposit Insurance Corp. issued the directive, requiring prompt action by Old Glory, after the bank failed to respond to a warning.
The enforcement action, publicized by the FDIC on Friday, marks a dramatic turn for Elmore City, Oklahoma-based Old Glory, which had a roster of prominent Republican co-founders. The bank was formed in 2022 and started offering savings and checking accounts, along with an internal peer-to-peer payment system dubbed Old Glory Pay, in 2023.
Despite rapid deposit and account growth, Old Glory has been unable to attract equity funding, and it has struggled to achieve profitability. Last year, it reported a $13 million loss, which was followed by a nearly $8 million loss in the first six months of this year,
The FDIC's order authorizes regulators to require the $277 million-asset bank to raise capital, seek an acquisition by another financial institution or potentially liquidate.
The FDIC said Old Glory is 'severely undercapitalized' after the bank's Tier 1 leverage ratio dropped to 2.69% as of June 30, according to regulatory filings. Under federal banking statutes, the minimum Tier 1 leverage ratio is 4%. If the capital ratio deteriorates further, below 2%, the FDIC would be required to take decisive action. That could include appointing a receiver or conservator within 90 days if the bank is classified as "critically undercapitalized."
Old Glory's management was supposed to submit an updated capital plan to the FDIC by Aug. 28, detailing how it intended to rebuild its balance sheet, preserve its remaining assets and protect depositors. But the bank's executives did not respond to the FDIC within the required two weeks, prompting the corrective action directive.
Mike Ring, president and CEO of Old Glory and a former partner at the law firm Greenberg Traurig, did not respond to requests for comment.
Old Glory was founded by Ben Carson, the former secretary of the Department of Housing and Urban Development; Mary Fallin Christensen, a former Oklahoma governor and congresswoman; Larry Elder, a conservative ratio and TV talk show host; and John Rich, a country music singer.
Under the FDIC's order, the bank's growth prospects are severely limited, and it is unclear if it will continue as a going concern.
Old Glory cannot open new branch locations, acquire other companies or launch new business lines. The order also prohibits the bank from increasing its average total assets quarter-over-quarter without regulatory approval. The order will remain in effect until the bank maintains adequate capitalization for four consecutive quarters.
Under the boilerplate language of the FDIC's order, regulators are prohibiting the bank from paying bonuses to senior executive officers, and executive pay is capped at pre-undercapitalization averages. The bank also is barred from accepting or renewing brokered deposits.
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Old Glory was formed in 2022 through the acquisition of First State Bank, a small, family-owned bank that was founded in 1903. That bank's former owner and CEO, Clay Christensen, is on Old Glory's board.
Ring and Eric Ohlhausen, another co-founder and the bank's chief strategy officer,
Despite a high-visibility marketing campaign and plans to expand into digital payment ecosystems and cryptocurrency integration, Old Glory has failed to generate sufficient revenue or funding to sustain its capital requirements.
