DuPage National Bank, West Chicago, IL, was closed by the Office of the Comptroller on Friday, becoming the first bank to fail in 2014. Acting as receiver and to protect depositors, the FDIC sold the failed bank to Republic Bank of Chicago, Oak Brook, IL.
Although DuPage National was a small bank with only $61.7 million in assets, the bank was in operation for 123 years before failing. Established in 1891, DuPage survived depressions and world wars but finally collapsed under the weight of bad loans.
All three branches of DuPage National Bank will reopen as branches of Republic Bank of Chicago and all depositors of DuPage will automatically become depositors of Republic Bank with uninterrupted FDIC deposit insurance up to the applicable limits. Over the weekend depositors of DuPage can access their money through the use of ATMs, debit cards and checks.
DuPage National Bank had total assets of $61.7 million as of September 30, 2013 and total deposits of $59.6 million. Republic Bank agreed to pay the FDIC a 1.2% premium on the assumption of DuPage Bank’s deposits and also agreed to purchase all of the failed bank’s assets.
The estimated loss to the FDIC Deposit Insurance Fund for the failure of DuPage National is $1.6 million. DuPage National Bank is the first banking failure of 2014. The last bank to fail in Illinois was Covenant Bank, Chicago, last February.