Farmers and Traders State Bank, Shabbona, Illinois, established in 1905, was closed today by the Illinois Department of Financial and Professional Regulation. The FDIC, appointed as receiver, sold the failed bank to First State Bank, Mendota, IL.
Despite being in business for over a century, Farmers and Traders State Bank remained a small bank with only 2 branches, approximately 10 employees and only $43 million in total assets.
Both branches of Farmers and Traders State Bank will reopen on Saturday as branches of First State Bank and all depositors of the failed bank will automatically become depositors of First State Bank. FDIC deposit insurance will continue without interruption for all depositors of Farmers and Traders up to the applicable limits.
Over the weekend, depositors of Farmers and Traders will have full access to their money through the use of checks, debit cards and ATMs.
Farmers and Traders State Bank, at March 31, 2012, had total assets of $43.1 million and total deposits of $42.3 million.
First State Bank was established in July 1940, has two branches and $734 million in assets. The holding company for First State Bank is Tri-County Financial Group, Inc., of Mendota, IL In addition to assuming all deposits, First State Bank also agreed to purchase all of the assets of Farmers and Traders State Bank.
The cost to the FDIC Deposit Insurance Fund for the failure of Farmers and Traders State Bank is $8.9 million. Farmers and Traders becomes the nation’s 27th bank failure of the year and the second in Illinois.