Ninety five year old Western Springs National Bank and Trust, which survived the depression and two previous banking crises, saw its long history come to an end today when the Office of the Comptroller of the Currency closed the bank to protect depositors. The FDIC, acting as receiver, sold the bank to Heartland Bank and Trust Company of Bloomington, Illinois.
Western Springs as a community bank, had a long and proud history of community involvement as described on the Bank’s website.
We actively participate in the planning and growth of our community by working with local government, business, consumer, civic and educational organizations. Our involvement doesn’t stop there. We encourage our directors and staff to develop community relationships through professional associations, service clubs, and community activities.
We celebrate more than 90 years of service as a community asset. Whether you are an old friend or a new neighbor, you probably are aware of the rich history of the Western Springs area. In 1916, we were the first bank in the village and we remain one of the few community financial institutions serving the immediate area. Quality service has always been and continues to be a tradition rather than a trend.
Both branches of Western Spring will reopen on Saturday as branches of Heartland Bank and depositors will have full access to their funds. Heartland Bank, in addition to assuming all deposits of Western Spring, will also purchase all of the failed bank’s assets. At year end 2010, Western Spring had total deposits of $181.9 and $186.8 million of assets.
The FDIC agreed to enter into a loss-share transaction with Heartland Bank on $100.8 million of the asset pool acquired from Western Spring. The FDIC maintains that by keeping assets in the private sector, losses on failed bank assets are minimized.
Heartland Bank and Trust Company is a locally owned community bank with over $1.6 billion in assets and regarded as one of the strongest banks in Illinois. Founded in 1971, Heartland is the 17th largest bank in Illinois. Prior to today’s acquisition, Heartland had acquired the failed Bank of Illinois, Normal, Illinois, in March 2010.
Illinois had the third largest number of banking failures in 2010 after Florida and Georgia. During 2010, Illinois had 16 banking failures. The failure of Western Springs brings the total number of failed banks in Illinois to four this year. Despite being in a state with numerous banking failures and economic problems, Heartland Bank and Trust remained financially strong by maintaining sound banking principles. Heartland, by virtue of its financial strength, is now positioned for growth through selective, FDIC assisted acquisitions of failed banks.
The estimated loss to the FDIC deposit insurance fund for the failure of Western Springs is $31 million. Western Springs National Bank and Trust is the nation’s 27 banking failure this year and the fourth in Illinois.