On Friday, the Illinois Department of Financial and Professional Regulation – Division of Banking closed Independent Bankers’ Bank, headquartered in Springfield, Illinois, and theFDIC was named as receiver. As receiver, the FDIC created Independent Bankers’ Bank Bridge Bank, National Association to take over the operations of the failed bank. Independent Bankers’ Bank provided correspondent banking services to client banks and did not take deposits directly from the public nor did it make loans to consumers. Independent Bankers’ Bank had about 450 client banks in four states. The bridge bank will allow the client banks to maintain their correspondent banking relationships with the least amount disruption to their respective operations.

As of September 30, 2009, Independent Bankers’ Bank had total assets of approximately $585.5 million and total deposits of approximately $511.5 million. At closing, the bank had an estimated $269,000 in uninsured funds.

The FDIC estimates the cost to the Deposit Insurance Fund will be $68.4 million. Independent Bankers’ Bank is the 138th bank to fail in the nation this year and the 21st in Illinois.