The first bank failure of 2009 was just announced.  On January 16 the National Bank of Commerce, Berkeley, Illinois, was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation was named the receiver.  Republic Bank of Chicago, Oak Brook, Illinois, is to assume all of the deposits of National Bank of Commerce.

The two locations of National Bank of Commerce will reopen on Saturday as branches of Republic Bank of Chicago.  Depositors and customers of the failed bank will automatically become depositors of Republic Bank.  The FDIC has made it clear that depositors of National Bank of Commerce can access their money by writing checks or using ATM or debit cards.  Checks drawn on the bank will continue to be processed.  Loan customers should continue to make their payments as usual.

National Commerce Bank had total assets of $430.9 million and total deposits of $402.1 million. In addition to assuming all of the failed bank’s deposits, Republic Bank agreed to purchase approximately $366.6 million.  The bank assets are being purchased at a discount of $44.9 million. The FDIC will retain the remaining bank assets of National Commerce Bank for later disposition.  The FDIC releases information that estimates that the cost to the governments Deposit Insurance Fund will be $97.1 million.

The last bank failure was Sanderson State Bank in Sanderson, Texas.  The bank was closed by the Texas Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver.  To protect the depositors in this bank closure, the FDIC entered into a purchase and assumption agreement with The Pecos County State Bank, Fort Stockton, Texas.

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