On Friday, the Illinois Department of Financial Professional Regulation, Division of Banking closed Town Community Bank and Trust, headquartered in Antioch, Illinois, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with First American Bank, headquartered in Elk Grove Village, Illinois, to assume all of the deposits of Town Community Bank and Trust. First American Bank did not pay a premium for the deposits of the failed bank.
As of September 30, 2009, Town Community Bank and Trust had approximately $69.6 million in total assets and $67.4 million in total deposits. First America Bank also agreed to purchase approximately $67.4 million of Town Community Bank and Trust’s assets. The FDIC retained the remaining assets for later disposition. The FDIC and First American Bank entered into a loss-share transaction on $56.2 million of Town Community Bank and Trust’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $17.8 million. Town Community Bank and Trust is the second FDIC-insured institution to fail in the nation this year and the first to fail in Illinois since Independent Bankers' Bank failed in December 2009.