Regulators close Hoffman Estates bank

A Hoffman Estates-based community bank was closed by federal regulators Friday, though its two suburban branch locations will remain open for business Saturday morning under a new name and owner.

The Federal Deposit Insurance Corp. seized Charter National Bank and Trust, which has locations in Hoffman Estates and Hanover Park. Barrington Bank & Trust, which is a subsidiary of Lake Forest-based Wintrust Financial Corp., will assume Charter National's $93.9 million in assets and $89.5 million in deposits, according to a news release.

Barrington Bank & Trust entered into a loss sharing agreement with the FDIC on $72.1 million of Charter National's loans, foreclosed real estate and other assets. The failure of Charter National is expected to cost the deposit insurance fund $17.4 million.

Officials from Barrington Bank & Trust said almost all of Charter National's assets were acquired at a discount of 4.1 percent.

Charter National's two branch locations will reopen Saturday as branches of Barrington Bank & Trust. Officials said customers should continue to bank as normal, as they will have full access to their deposits, including ATM or debit cards, and checks.

In two years' time, Wintrust has acquired eight banks — seven with the assistance of the FDIC, and one unassisted.

There have been a total of nine bank failures nationwide in 2012, which is a slower pace than in 2011, when twice as many banks had been shuttered by this time.

Last year, a total of 92 banks closed in the U.S. — 16 of those were in Illinois.

The closure of Charter National marked the first bank failure in Illinois for 2012.

Ÿ Daily Herald news services contributed to this report.