On Friday, the Illinois Department of Financial Professional Regulation – Division of Banking closed Bank of Illinois, headquartered in Normal, Illinois, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Heartland Bank and Trust Company, headquartered in Bloomington, Illinois, to assume all of the deposits of Bank of Illinois.

As of December 31, 2009, Bank of Illinois had approximately $211.7 million in total assets and $198.5 million in total deposits. Heartland Bank and Trust Company will pay the FDIC a premium of 3.61% to assume all of the deposits of Bank of Illinois. Heartland Bank and Trust Company also agreed to purchase essentially all of the failed bank’s assets. The FDIC and Heartland Bank and Trust Company entered into a loss-share transaction on $166.6 million of Bank of Illinois's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $53.7 million. Bank of Illinois is the 24th FDIC-insured institution to fail in the nation this year, and the third in Illinois.