FDIC Hits Old Glory Bank With Prompt Corrective Action Over 2.69% Leverage Ratio

The Federal Deposit Insurance Corp. issued a prompt corrective action directive against Elmore City, Oklahoma-based Old Glory Bank after its leverage ratio fell to 2.69% as of June 30, classifying the lender as "significantly undercapitalized." The order, issued August 28 and made public September 26, 2026, requires Old Glory to file an updated capital restoration plan within two weeks and bars capital distributions or management fee payments that would further erode capital. The $279.4 million-asset bank also cannot accept brokered deposits or pay senior executive bonuses without regulatory approval. The action follows the August 2026 collapse of Old Glory's merger with special-purpose acquisition company Digital Asset Acquisition Corp., which would have created Nasdaq-listed, crypto-focused OGB Financial Company. An Old Glory spokesperson said the Federal Reserve declined to approve the transaction and that the bank is now raising capital from its ownership group. Old Glory has operated under an FDIC consent order since May 2024 over insufficient capital. Co-founders include former HUD Secretary Ben Carson and former Trump press secretary Sean Spicer.