PALOS HEIGHTS, Ill. (TheStreet) -- An Illinois bank failed Friday, bringing the total number of U.S. bank closures for 2010 to 110.
It was the second week in which regulators shuttered only one bank.
The Illinois Department of Financial and Professional Regulation closed Palos Bank and Trust Company of Palos Heights, Ill. and appointed the Federal Deposit Insurance Corp. receiver.
The failed bank had $493 million in total assets and was included in TheStreet's Bank Watch List of undercapitalized institutions, based on second-quarter regulatory data provided by SNL Financial.As of June 30, Palos Bank and Trust's ratio of nonperforming assets, including nonaccrual loans, loans past due 90 days or more and repossessed real estate, made up a crippling 14.38% of total assets. The FDIC sold the failed institution's $468 million in deposits for a 1% premium to First Midwest Bank of Itasca, Ill., which is the main subsidiary of First Midwest Bancorp (FMBI). In addition to the deposits, First Midwest Bank acquired the failed bank's assets, with the FDIC agreeing to cover 80% of losses on $344 of the riskier assets. > > Bull or Bear? Vote in Our Poll The failed bank's five offices were set to reopen Saturday as First Midwest. The FDIC estimated the cost of the Palos Bank and Trust's failure to the deposit insurance fund would be $72 million.
Ongoing Bank Failure CoverageWith 14 bank closures in Illinois this year, the state has the second highest number of bank failures for 2010. Florida is No. 1 with 20. Since the beginning of 2008, there have been 36 failures in Illinois, the same number as Florida. Only Georgia has more: 41. All previous bank and thrift failures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:
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