FIs closed: Palos Bank and Trust Company, Palos Heights, Illinois , USA
On Friday, 13 August, 2010, Palos Bank and Trust Company, Palos Heights, Illinois was closed by the Illinois Department of Financial and Professional Regulation - Division of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Midwest Bank, Itasca, Illinois, to assume all of the deposits of Palos Bank and Trust Company.
The five branches of Palos Bank and Trust Company reopened on Saturday as branches of First Midwest Bank.
As of 30 June, 2010, Palos Bank and Trust Company had approximately USD493.4 million in total assets and USD467.8 million in total deposits.
First Midwest Bank will pay the FDIC a premium of 1.0 percent to assume all of the deposits of Palos Bank and Trust Company.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD72.0 million.
Palos Bank and Trust Company is the 110th FDIC-insured institution to fail in the USA this year and the fourteenth in Illinois.
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