The FDIC and State Bank of Lincoln entered into a loss-share transaction on approximately $31 million of The John Warner Bank's assets. State Bank of Lincoln will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.Update: First State Bank, IL and Rock River Bank, IL failures #2 and #3 Sphere: Related Content Print this post
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10 million. State Bank of Lincoln's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. The John Warner Bank is the 46th FDIC-insured institution to fail in the nation this year, and the seventh in Illinois. The last FDIC-insured institution to be closed in the state was Bank of Lincolnwood, Lincolnwood, on June 5, 2009.
Thursday, July 2, 2009
Posted by Tyler Durden at 4:35 PM
Failure Friday is early today: today's bank shooting green all the way to the grave is John Warner Bank, from Clinton, IL. Likely more to come today.
Labels: FDIC Friday Failures