On Friday, the Illinois Department of Financial and Professional Regulation – Division of Banking closed George Washington Savings Bank, headquartered in Orland Park, Illinois, and the FDIC was named 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 George Washington Savings Bank.

As of December 31, 2009, George Washington Savings Bank had approximately $412.8 million in total assets and $397 million in total deposits. FirstMerit Bank, N.A. will pay the FDIC a premium of 0.31% to assume all of the deposits of George Washington Savings Bank. FirstMerit Bank, N.A. also agreed to purchase essentially all of the failed bank’s assets. The FDIC and FirstMerit Bank, N.A. entered into a loss-share transaction on $324.2 million of George Washington Savings Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $141.4 million. George Washington Savings Bank is the 19th FDIC-insured institution to fail in the nation this year, and the second in Illinois.