Bank Regulators Take Over Bank of Illinois

Regulators have taken over the Bank of Illinois in Normal. The Federal Deposit Insurance Corporation is the appointed receiver.

Heartland Bank and Trust Company of Bloomington will assume all the deposits of Bank of Illinois for a premium of 3.61 percent and has agreed to purchase all the assets.

The FDIC says it expects the cost to the FDIC Insurance Fund will be $53.7 million.

As of December 31, 2009 Bank of Illinois had $211 million in assets. The FDIC and Heartland Bank have entered into a loss sharing program on $166.6 million in remaining assets.

Bank of Illinois is the 24th FDIC Insured institution to fail in the nation this year and the third in Illinois. It was founded in 1914.