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FDIC Creates Bridge Bank to Take Over Operations of Independent Bankers' Bank, Springfield, Illinois
The Federal Deposit Insurance Corporation (FDIC) created a bridge bank to take over the operations of Independent Bankers' Bank, Springfield, Illinois, after the bank was closed today by the Illinois Department of Financial and Professional Regulation—Division of Banking, which appointed the FDIC as receiver. The newly created bank is Independent Bankers' Bank Bridge Bank, National Association.
Independent Bankers' Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.
Independent Bankers' Bank had approximately 450 client banks in four states, and operated one regional office. It provided a variety of services for its clients, including clearing accounts, investments, consulting, purchasing loans, and selling loan participations. Since the FDIC created a new bank to take over the operations of Independent Bankers' Bank, there is not expected to be any meaningful impact on the bank's clients.
The creation of the bridge bank allows the client banks to maintain their correspondent banking relationship with the least amount of disruption. The FDIC will operate Independent Bankers' Bank Bridge Bank, to allow preexisting marketing efforts for the bank to continue.
As of September 30, 2009, Independent Bankers' Bank had approximately $585.5 million in assets and $511.5 million in deposits. At the time of closing, the bank had an estimated $269,000 in uninsured funds.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-451-1093. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; and thereafter from 8:00 a.m. to 8:00 p.m., CST. Customers who would like more information about today's transaction can also visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/ibb.html.
Due to the Christmas Holiday, the toll-free number will not be operational between the hours of 3 p.m., Thursday, December 24, and 8:00 a.m., Monday, December 28. At that time the toll-free number will resume its normal hours.
The FDIC has contracted for operational management of Independent Bankers' Bank Bridge Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $68.4 million. Independent Bankers' Bank is the 138th bank to fail in the nation this year and the twenty-first in Illinois. The last FDIC-insured institution to fail in the state was Benchmark Bank, Aurora, on December 4, 2009.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,099 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-237-2009
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