Today, the OCC closed the National Bank of Commerce, Berkley, Illinois and the FDIC was named as receiver. Republic Bank of Chicago, headquartered in Chicago, Illinois, entered into a purchase and assumption agreement with the FDIC to assume all the deposits of National Bank of Commerce. Republic Bank of Chicago also purchased approximately $366.6 million of the failed bank's assets at a discount of $44.9 million, with the FDIC retaining the remaining assets for later disposition. As of January 7, 2009, National Bank of Commerce had total assets of $430.9 million and total deposits of $402.1 million.
The FDIC has estimated that the cost to the Deposit Insurance Fund will be $97.1 million. National Bank of Commerce is the first bank to close this year and the second bank to close in Illinois since 2002.