Bank failure in Illinois brings 2012 total to 43

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Associated Press

Posted on September 29, 2012 at 8:02 AM

Updated Saturday, Sep 29 at 10:01 AM

WASHINGTON (AP) — Regulators say they have closed a small bank in Illinois, bringing to 43 the number of U.S. bank failures this year.

The Federal Deposit Insurance Corp. on Friday seized First United Bank, based in Crete, Ill.

The bank had about $328.4 million in assets and $316.9 million in deposits as of June 30.

Old Plank Trail Community Bank NA, based in New Lenox, Ill., agreed to assume all the deposits and purchase essentially all of the failed lender's assets.

The FDIC and Old Plank Trail entered into a loss-share transaction on $172.7 million of First United's assets.

The failure of First United Bank, which had five branches, is expected to cost the deposit insurance fund $48.6 million.

First United is the seventh FDIC-insured institution in Illinois to fail this year.

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