Farmers and Traders State Bank, Shabbona, Ill., was closed by the Illinois Department of Financial and Professional Regulation on June 8. It is the third Illinois bank failure this year and the eighth Midwestern bank overall.
The FDIC facilitated the sale of the closed bank’s $43.1 million in assets and $42.3 million in deposits to First State Bank in Mendota, Ill. No loss sharing agreement was made.
Farmers and Traders State Bank was the 497th largest bank among Illinois’ 572 banks at the end of the first quarter. It had two offices and 12 full-time equivalent employees. It reported a loss of $1.6 million at the end of 2011 and a second loss of $1.65 million at the end of the first quarter. The bank’s equity capital had shrunk to 1.34 percent by March, 31.
The FDIC estimates the cost of resolution to the Deposit Insurance Fund to be $8.9 million. It is the 27th bank to fail in the country this year.