On Friday, the Illinois Department of Financial and Professional Regulation - Division of Banking closed Benchmark Bank, headquartered in Aurora, Illinois, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, N.A., headquartered in Chicago, Illinois, to assume all of the deposits of Benchmark Bank. MB Financial Bank did not pay the FDIC a premium for the deposits.
As of November 16, 2009, Benchmark Bank had total assets of approximately $170 million and total deposits of approximately $181 million. MB Financial Bank also agreed to purchase essentially of the assets of the failed bank. The FDIC and MB Financial Bank, N.A. entered into a loss-share transaction on approximately $139 million of Benchmarks Bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $64 million. Benchmark Bank is the 129th bank to fail in the nation this year and the 20th in Illinois.