The first three bank failures of 1986 were reported.

First National Bank of White City, Kan., became the nation’s first bank failure of 1986, pulled down by what the closing manager called liberal lending and lax collections. A spokesman for the Federal Deposit Insurance Corp. said Herington Bancshares of Herington, Kan., will take over First National’s deposits. The FBI is investigating the failure of First State Bank in Cache, Okla., which was closed under allegations of “insider abuse,” Oklahoma banking officials said. Bad farm loans also forced the closing of the Bank of Dixie in the northeast Louisiana town of Lake Providence.