Recession claims two more US banks from Illinois

25 May 2009

Two more banks crumbled in the US this weekend with the Federal Deposit Insurance Corporation (FDIC) taking charge of the Citizens National Bank, Macomb, Illinois, and Strategic Capital Bank, Champaign, Illinois.

With these two, the number of FDIC-insured institution to fail in the nation this year has reached a whopping 36, and the fifth in Illinois.

To protect the depositors of Citizens, the FDIC entered into a purchase and assumption agreement with Morton Community Bank, Morton, Illinois, to assume all the deposits of Citizens, excluding those from brokers.

Citizens will now reopen as branches of Morton Community Bank. Depositors of Citizens National Bank will automatically become depositors of Morton Community Bank, FDIC said in a release.

As of 13 May 2009, Citizens had total assets of $437 million and total deposits of approximately $400 million. Morton Community Bank agreed to purchase approximately $240 million of assets. The FDIC will retain the remaining assets for later disposition.

Morton Community Bank will purchase all deposits, except about $200 million in brokered deposits, held by Citizens. The FDIC will pay the brokers directly for the amount of their funds. Customers who place money with brokers should contact them directly for more information about the status of their deposits.