Today, the FDIC was named as receiver of six Illinois Banks: The John Warner Bank, First State Bank of Winchester, Rock River Bank, Elizabeth State Bank, First National Bank of Danville, and Founders Bank. The OCC closed the The First National Bank of Danville and the remaining Illinois banks were closed by the Illinois Department of Financial and Professional Regulation, Division of Banking. The FDIC reported that all of the failed Illinois banks were controlled by one family and followed a similar business model that “created concentrated exposure in each institution.” The FDIC was also named receiver of State Bank of Texas closed by the Texas Department of Banking. Today’s failures bring the total number of bank failures in the nation to 52.

As receiver, the FDIC entered into a purchase and assumption agreement with State Bank of Lincoln, headquartered in Lincoln, Illinois, to assume of the deposits of The John Warner Bank, Clinton, Illinois, for a 4.1% premium. As of April 30, 2009, The John Warner Bank had total assets of $70 million and total deposits of approximately $64 million. State Bank of Lincoln also agreed to assume all of the deposits of the failed bank and agreed to purchase approximately $63 million in assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and State Bank of Lincoln entered into a loss-share transaction on approximately $31 million of the failed bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $10 million.

As receiver, the FDIC entered into a purchase and assumption agreement with The First National Bank of Beardstown, Beardstown, Illinois, to assume all of the deposits of First State Bank of Winchester, Winchester, Illinois, for a 2% premium. As of April 30, 2009, The First State Bank of Winchester had total assets of $36 million and total deposits of approximately $34 million. First National Bank of Beardstown also agreed to purchase approximately $33 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and First National Bank of Beardstown entered into a loss-share transaction on approximately $20 million of The First State Bank of Winchester’s assets. The FDIC estimates the cost to the Deposit Insurance Fund will be $6 million.

As receiver, the FDIC entered into a purchase and assumption agreement with The Harvard State Bank, Harvard, Illinois, to assume all of the deposits of Rock River Bank, Oregon, Illinois, for a 2% premium. As of April 30, 2009, Rock River Bank had total assets of $77 million and total deposits of approximately $75.8 million. The Harvard State Bank also agreed to purchase approximately $72.9 million of the failed bank's assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and The Harvard State Bank entered into a loss-share transaction on approximately $51.3 million of Rock River Bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $27.6 million.

As receiver, the FDIC entered into a purchase and assumption agreement with Galena State Bank and Trust, Galena, Illinois, to assume all of the deposits of The Elizabeth State Bank, Elizabeth, Illinois for a 1% premium. As of April 30, 2009, The Elizabeth State Bank had total assets of 55.5 million and total deposits of approximately $50.4 million. Galena State Bank also agreed to ourchase approximately $52.3 million of the failed bank's assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and Galena State Bank and Trust entered into a loss-share transaction on approximately $44.5 million of the Elizabeth State Bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $11.2 million.

As receiver, the FDIC entered into a purchase and assumption agreement with First Financial Bank, N.A. Terre Haute, Indiana, to assume all of the deposits of The First National Bank of Danville, Danville, Illinois, for a 5.36% premium. As of April 30, 2009, the First National Bank of Danville had total assets of $166 million and total deposits of $147 million. First Financial Bank, N.A. also agreed to purchase approximately $148 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. The FDIC entered into a loss-share transaction on approximately $97 million of The First National Bank of Danville’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $24 million.

As receiver, the FDIC entered into a purchase and assumption agreement with The PrivateBank and Trust Company, Chicago, Illinois, to assume all of the deposits of Founders Bank, Worth, Illinois, for a 1.5% premium. As of April 30, 2009, Founders Bank had total assets of $962.5 million and total deposits of approximately $848.9 million. The PrivateBank and Trust Company also agree to purchase approximately $888.4 million of the failed bank's assets, with the FDIC retaining the remaining assets for later disposition. The FDIC entered into a loss-share transaction with PrivateBank and Trust Company on approximately $617 million Founders Bank assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $188.5 million.

As receiver, the FDIC entered into a purchase and assumption agreement with State Bank of Texas, Irving, Texas, to assume all of the deposits of Millennium State Bank of Texas, Dallas, Texas. As of June 30, 2009, Millennium State Bank of Texas had total assets of approximately $118 million and total deposits of $115 million. State Bank of Texas also agreed to purchase essentially all of Millennium State Bank’s assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $47 million.