Three Banks Closed on Jan. 15

Three banks were closed by state and federal regulators on Friday, Jan. 15. These closures raise the year's tally of failed institutions to five: four banks and one credit union.

The latest failures include:

Town Community Bank and Trust
Town Community Bank and Trust, Antioch, Illinois, was closed by the Illinois Department of Financial Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First American Bank, Elk Grove Village, Illinois, to assume all of the deposits of Town Community Bank and Trust.

The sole branch of Town Community Bank and Trust was to reopen on Saturday as a branch of First American Bank. Depositors of Town Community Bank and Trust will automatically become depositors of First American Bank.

As of September 30, 2009, Town Community Bank and Trust had approximately $69.6 million in total assets and $67.4 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.8 million.

St. Stephen State Bank
St. Stephen State Bank, St. Stephen, Minnesota, was closed by the Minnesota Department of Commerce, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with First State Bank of St. Joseph, St. Joseph, Minnesota, to assume all of the deposits of St. Stephen State Bank.

The two branches of St. Stephen State Bank will reopen during normal business hours as branches of First State Bank of St. Joseph. Depositors of St. Stephen State Bank will automatically become depositors of First State Bank of St. Joseph.

As of September 30, 2009, St. Stephen State Bank had approximately $24.7 million in total assets and $23.4 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.2 million.

Barnes Banking Company
Barnes Banking Company, Kaysville, Utah, was closed by the Utah Department of Financial Institutions, which appointed FDIC as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of Kaysville (DINB), which will remain open until February 12, 2010 to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the receiver immediately transferred to the DINB all insured deposits of Barnes Banking Company, except for brokered deposits, certificates of deposits (CDs) and individual retirement accounts (IRAs). The receiver also transferred to the DINB all secured deposits by public entities.

The main office and all branches of Barnes Banking Company were to open from 9:00 a.m. to 1:00 p.m., on Saturday. The DINB will maintain Barnes Banking Company's normal business hours thereafter. Zions First National Bank, Salt Lake City, Utah, will provide operational management of the DINB. Banking activities, such as direct deposit and writing checks, ATM and debit cards, can continue normally for former customers of Barnes Banking Company until February 12, 2010. Barnes Banking Company official checks will continue to clear and will be issued to customers closing accounts.

All insured depositors of Barnes Banking Company are encouraged to transfer their insured funds to other banks during this transitional period.

As of September 30, 2009, Barnes Banking Company had $827.8 million in total assets and $786.5 million in total deposits.

The cost to the FDIC's Deposit Insurance Fund is estimated to be $271.3 million.





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