On Friday, the Illinois Department of Financial Professional Regulation - Division of Banking closed Midwest Bank and Trust Company, headquartered in Elmwood Park, Illinois, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with FirstMerit Bank, National Association, headquartered in Akron, Ohio, to assume all of the deposits of Midwest Bank and Trust Company.
As of March 31, 2010, Midwest Bank and Trust Company had approximately $3.17 billion in total assets and $2.42 billion in total deposits. FirstMerit Bank will pay the FDIC a premium of 0.4% to assume all of the deposits of Midwest Bank and Trust Company, and agreed to purchase essentially all of the failed bank's assets. The FDIC and FirstMerit Bank entered into a loss-share transaction on $2.27 billion of Midwest Bank and Trust Company's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $216.4 million. Midwest Bank and Trust Company is the72nd FDIC-insured institution to fail in the nation this year, and the eleventh in Illinois. FirstMerit Bank, N.A. had previously acquired George Washington Savings Bank from the FDIC.