Friday, the Illinois Department of Financial and Professional Regulation, Division of Banking closed Citizens Bank&Trust Company of Chicago, headquartered in Chicago, Illinois, and the FDIC was appointed receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Republic Bank of Chicago, headquartered in Oak Brook, Illinois, to assume all of the deposits of Citizens Bank&Trust Company of Chicago.

As of December 31, 2009, Citizens Bank&Trust Company of Chicago had approximately $77.3 million in total assets and $74.5 million in total deposits. Republic Bank of Chicago paid the FDIC a premium of 0.00013% to assume all of the deposits of Citizens Bank&Trust Company of Chicago. The FDIC as receiver will retain most of the assets from Citizens Bank&Trust Company of Chicago for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $20.9 million. Citizens Bank&Trust Company of Chicago is the 53rd FDIC-insured institution to fail in the nation this year, and the sixth in Illinois (and the third of seven Illinois banks closed on Friday).