Twice in the past few weeks, clients have asked us about Old Glory Bank. It’s being heavily promoted on media outlets like Fox News.
Given how much we talk about how to protect yourself against bank bail-ins, the main question we get is one of safety. People want to know if the bank is a good place to keep their cash.
In this article, we’ll briefly talk about what the bank is, and various safety indicators.
The History of Old Glory Bank
In 1903, First State Bank was founded in Elmore City, Oklahoma. It holds the title of the state’s oldest bank and has a rich history of over 120 years. In 2022, the bank underwent a rebranding. It transitioned from First State Bank to Old Glory Bank, a name inspired by the American flag.
Old Glory Holding Company, a Delaware bank holding company, is behind this transformation. It purchased and renamed the bank to reflect its new identity and direction.
This change wasn’t just about the name. It marked a new path guided with the involvement of people like Dr. Ben Carson, Larry Elder, Mary Fallin Christensen, and John Rich. They each added their own ideas and impact, shaping the bank’s goals and services for a demographic that values a politically conservative, pro-American ideology.
Contact Details
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Headquarters: 206 South Main Street, Elmore City, OK 73433.
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Phone: (580) 788-2213
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Website: https://oldglorybank.com/
Who Owns Old Glory Bank?
Old Glory Bank is “100% owned by its founders, family and friends, ensuring that it remains under Main Street ownership rather than Wall Street.”
The bank’s leadership includes prominent figures known for their conservative values and contributions to American society:
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Dr. Ben Carson, a pioneering neurosurgeon and former Secretary of Housing and Urban Development (2017-2021).
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Larry Elder, a conservative talk radio and television host.
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Mary Fallin Christensen, the first and only woman to be elected Governor of Oklahoma (2011-2019).
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John Rich, a celebrated country music singer-songwriter.
These leaders bring a unique blend of medical, political, and cultural perspectives to the bank’s operations, aligning it closely with its target demographic’s values.
Championing Financial Freedom for Hard Working Americans
Old Glory Bank aims to “serve lower- and middle-income Americans — especially hard-working and freedom-loving patriots who share its values.”
Moreover, Old Glory Bank positions itself as a strong advocate for financial freedoms. It does so through initiatives like the “Banking Bill of Rights” and “Old Glory Pay.” They say these programs are designed to safeguard customers’ rights to privacy, association, and freedom from censorship.
In their minds, these initiatives show the bank’s commitment to offering a banking experience aligned with its customers’ values. Focusing on serving a niche like this sets Old Glory Bank apart in the American banking industry.
Banking Bill of Rights
In response to modern concerns about financial freedoms, Old Glory Bank has laid out a “Banking Bill of Rights,” emphasizing:
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Freedom of Association: The right to bank without the risk of cancellation because of your faith, industry, or beliefs.
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Freedom of Financial Privacy: The right to banking privacy, shielded from improper government snooping.
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Freedom from Censorship: The right to an online payment app without the threat of cancellation by big tech censors.
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Freedom of Lifestyle: The right to banking services without restrictions imposed by a “social credit score.”
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Freedom of American Values: The right to bank with an institution that respects and supports your American values.
[Note: These five core principles are extracted from Old Glory Bank’s actual “Banking Bill of Rights”.]
Old Glory Pay
Old Glory Pay is marketed as the first “cancel-proof” payment platform in America. It aims to make banking transactions easier by allowing direct, smooth transfers between Old Glory Bank account holders without third-party involvement.
This setup ensures swift and secure transactions, offering customers a hassle-free experience while bypassing common payment limits.
Why it matters: In today’s world, there are a lot of rules about where your money can go. Sometimes payments get delayed or blocked because of these rules. Old Glory Pay is set up to avoid these issues as much as possible. As long as the transaction is between Old Glory customers, it goes through smoothly.
[Note: The section above is based on information from the Old Glory website. We don’t know if Old Glory Pay actually works as smoothly or in the manner the bank claims.
We can say, however, that payments you make from a bank account at one bank to an account holder at another bank always go through an intermediary. It’s the absence of an intermediary that makes Old Glory Pay an interesting concept.
In addition, all banks, including Old Glory, are subject to strict regulation by the Treasury Department, Federal Deposit Insurance Commission, the Federal Reserve, and other agencies. All banks must stay on the good side of regulators to keep their license. And if a bank is ordered to freeze a customer’s accounts, it has no choice but to comply.]
Is Old Glory Bank Safe?
Our go to analysis tool for domestic (US) bank stability is Weiss Ratings, which gives Old Glory a D+ [Rating Date: March 2024]. For reference, A+ is best.
A rating this low is quite concerning at first glance and usually enough for us to give it a pass.
But if you look closer, it seems the reason Weiss gave Old Glory such a bad score is because it’s highly unprofitable as an operating business. We suspect this is due to the fact that they are investing a lot into marketing, among other things.
However, the bank does maintain a high amount of capital and liquidity. This indicates a strong safety net against insolvency and ensures depositor security.
Still, unless Old Glory finds a way to make money, we don’t see it as financially sustainable.
Important Statistics
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Tier-1 Capital Ratio: Not explicitly provided but inferred to be strong based on capital standing comments.
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Risk-Based Capital Ratio: 93.17%
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Leverage Ratio: 10.85%
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Return on Assets: -20.87%
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Total Assets: Less than $100 million [99.12M]. Note: This statistic indicates that in terms of assets, Old Glory is a tiny bank. By comparison, JP Morgan Chase has more than $4 trillion in assets.
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Capital Base: Suggests a solid foundation despite profitability issues.
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Total Deposits: Data not provided
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Net Income: -$11.57 million in 2023
Frequently Asked Questions
Is it FDIC Insured?
Yes. Old Glory’s registration number is 18924. That means that your deposits will be insured up to $250,000 per holder, per account.
Is It a Scam? / Is It Legit?
Old Glory Bank (formerly known as First State Bank) is a real bank. Despite criticisms, Old Glory Bank appears to operate as a legitimate institution. That said, its marketing can be aggressive, which is why it may seem to be “scammy.”
Summary
On a strict safety basis, Old Glory Bank offers a high level of stability. It maintains high liquidity. And it’s backed by FDIC insurance, adding an extra layer of protection. But the bank is currently losing a great deal of money.
Old Glory markets itself as a bank that follows traditional American values. And for that, we think it’s an interesting experiment.
However, at the end of the day, the courts and regulators will likely get involved if the bank goes too far outside the lines. We do have some concern that it may be targeted for its “patriotic” views in the future. And because the bank is so small, it could be difficult for it to fight back.
It will be very interesting to see how this turns out.
Need Help Finding the Best Bank?
Since 1984, we’ve helped more than 15,000 customers and clients protect their wealth using proven, low-risk planning. A key part is finding safe banks to park your cash — that are less likely to be subject to a bail-in. Sometimes that’s here in the US. Sometimes it’s overseas.
To see if our planning is right for you, please book in a free no-obligation call with one of our Associates. You can do that here.
Disclaimer: This review is for information only. It is not financial advice. No compensation was received for this review.
