Friday, the Office of the Comptroller of the Currency closed Amcore Bank, National Association, headquartered in Rockford, Illinois, and the FDIC was appointed receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Harris National Association, headquartered in Chicago, Illinois, to assume all of the deposits of Amcore Bank.
As of December 31, 2009, Amcore Bank had approximately $3.8 billion in total assets and $3.4 billion in total deposits. Harris National Association paid the FDIC a premium of 0.01% to assume all of the deposits of Amcore Bank and agreed to purchase essentially all of the failed bank’s assets. The FDIC and Harris National Association entered into a loss-share transaction on $2.0 billion of Amcore Bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $220.3 million. Amcore Bank is the 51st FDIC-insured institution to fail in the nation this year and the fourth in Illinois (and the first of seven Illinois banks closed on Friday).