February 12, 2012- Two more banks failed on Friday bringing the 2012 total of bank failures to nine. Regulators closed two small banks in Indiana and Illinois. The number of banks that have been shuttered thus far in 2012 is less than the rate in 2011 when 92 were closed. In addition, last year through February, regulators had already closed 18 banks.
The FDIC took control of Charter National Bank in Illinois. The bank had nearly $94 million in total assets and $89.5 million worth of deposits. In Indiana, the FDIC seized SCB Bank, which had $182.6 million worth of assets and deposits of $171.6 million.
Barrington Bank & Trust in Barrington, Illinois is assuming the deposits and assets of Charter National. It also agreed to share $72.1 million in losses from Charter National with the FDIC. First Merchants Bank from Muncie, Indiana will assume the deposits and assets from SCB Bank.
The closing of the two banks is expected to cost the FDIC over $51 million. The Barrington Bank failure was the first in Illinois this year, which is one state that was hit the hardest in bank failure since the financial crisis started in 2008. In 2011, 16 banks in Illinois were closed by regulators.
Other states hit hard by bank failures include Florida, Georgia and California.