Antioch bank becomes first in Illinois to fail in 2010
An Antioch bank that closed its doors Friday and reopened Saturday was the first to fail in Illinois in 2010, and the fourth nationwide.
Town Community Bank and Trust was shut down and then reopened Saturday as a branch of Elk Grove Village-based First American Bank.
According to the Federal Deposit Insurance Corp., Town Community, located at 41412 N. Highway 83 in Antioch, had $69.6 million in assets as of Sept. 30. First American is buying $67.6 million of the assets. The FDIC will retain the rest for sale.
Town Community's $67.4 million in deposits have been transferred to First American.
On Saturday, Town Community posted a short message on its Web site.
"On Friday, January 15, 2010, Town Community Bank and Trust ... was closed by the Illinois Department of Financial and Professional Regulation. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed. All accounts, excluding certain brokered deposits, have been transferred to First American Bank, Elk Grove Village."
First American did not pay a premium to assume all of Town Community's deposits, according to a news release from the FDIC.
The FDIC and First American entered into a loss-share agreement on $56.2 million of Town Community assets.
"First American will share in the losses on the asset pools covered under the loss-share agreement," the release reads.
Along with Town Community, banks in Kaysville, Utah, and St. Stephen, Minn., also closed Friday.
Daily Herald wire services contributed to this report.