The FDIC failed two banks Friday, Charter National Bank and Trust of Hoffman Estates, Ill., and SCB Bank of Shelbyville, Ind., bringing 2012′s bank failure total to nine. SCB Bank’s failure marks Indiana’ second failure since the crisis. Notably, both were closed by the Office of the Comptroller of the Currency, and not state regulators.
SCB Bank was closed by the OCC on Friday, according to an FDIC press release. The FDIC was named receiver, and it entered into an agreement with First Merchants Bank of Muncie, Ind.
By most-recent estimates, SCB Bank had $182.6 million in assets and $171.6 million in deposits, according to the press release. First Merchants Bank will be assuming all deposits and purchasing the bank’s assets.
SCB Bank had only four branches, all of which will now operate as First Merchants Bank.
In neighboring Illinois, which has had 50 bank failures since the financial crisis began, Charter National Bank and Trust of Hoffman Estates was closed by the OCC as well. As is always the case, the FDIC was named receiver.
The FDIC entered into a purchase agreement with Barrington Bank & Trust Company of nearby Barrington, Ill. Barrington Bank & Trust will be assuming all $89.5 million in deposits and purchasing essentially all of the bank’s $93.9 million in assets, according to the press release.
Charter National had just two branches, both of which will now operate as Barrington Bank locations. As is the case with all bank failures, customers should continue to use their own branch until certain systems upgrades happen, after which point they will be able to use the assuming bank’s branch.
Between the two failures, the FDIC Deposit Insurance Fund suffered losses of about $51.3 million.
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