Tally Rises to Nine With Two More Bank Failures

A bank in Indiana and another in Illinois closed Friday, February 10, increasing the tally for ""FDIC-insured banks"":http://www.fdic.gov/bank/individual/failed/banklist.html closed this year to nine.

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Shelby County Bank (SCB) of Shelbyville, Indiana shut its doors and was acquired by ""First Merchants Bank"":https://www.firstmerchants.com/ of Muncie, Indiana. The FDIC and First Merchants Bank reached an agreement to purchase $117 million of loans and assume $136 million of deposits from SCB.

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SCB ended 2011 with $182.6 million in assets and $171.6 million in total deposits.

SCB is the first bank in Indiana to go under this year, with Integra Bank in Evansville, Indiana being the last bank in the state to close on July 29, 2011.

Charter National Bank and Trust of Hoffman Estates, Illinois concluded its operation with $93.9 million in total assets and $89.5 million in total deposits as of December 31, 2011.

""Barrington Bank & Trust Company"":http://www.barringtonbank.com/ of Barrington, Illinois took over Charter National and reopened over the weekend as a branch of Barrington Bank.

The FDIC and Barrington Bank entered a loss-share agreement on $72.1 million of the bank's assets and will share in the losses on asset pools covered under the agreement.

The total cost to the FDIC for both banks is estimated to be $51.3 million, with $33.9 million for SCB and $17.4 million for Charter bank.

Last year, the FDIC reported 92 bank closings, compared to 157 in 2010.