Arcola Homestead Savings Bank Closed by Regulators

State banking regulators closed the Arcola Homestead Savings Bank Friday, and turned it over to the federal regulators. But unlike many failed banks, Arcola Homestead will not be opening under a new name.

FDIC spokesman David Barr says Arcola Homestead Savings Bank will be closing for good.

"More than nine out of ten bank failures result in a transition over to a new ownership group", says Barr. "However, in this case, Homestead was one of the four or five percent of the bank failures we've seen, where we haven't been able to find a buyer."

But Barr says Homestead depositors will still be getting their money back. He says checks for all insured deposits will be mailed to account owners, starting on Monday. In addition, Homestead depositors have the option of transferring the checking and NOW accounts over to the First Mid-Illinois Bank in Arcola. Barr warns that account holders will have to go over to the First Mid-Illinois branch in Arcola to make the switch --- and that checks from their Homestead checkbooks are no longer valid.

The FDIC says 81 federally insured banks have failed so far this year. Arcola Homestead Savings Bank 12th Illinois bank to fail.The federal agency says the bank had about $17 million in assets and $18.1 million in deposits, as of March 31st.