[Updated with Deposit Insurance Fund info @ 1:40 p.m.]
…and one of its former officers is a DeKalb County official.
Farmers and Traders State Bank, Shabbona, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank, Mendota, Illinois, to assume all of the deposits of Farmers and Traders State Bank.
The two branches of Farmers and Traders State Bank will reopen on Saturday as branches of First State Bank. Depositors of Farmers and Traders State Bank will automatically become depositors of First State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.9 million. Compared to other alternatives, First State Bank’s acquisition was the least costly resolution for the FDIC’s DIF.
You heard it here (and perhaps only here) that FTSB accepted a consent order from FDIC last summer in response to charges of “unsafe or unsound banking practices and violations of law, rule, or regulation related to its Compliance Management System alleged to have been committed by the Bank.”
Yes, the Chronicle published from the same release this morning, but what they missed — and what I missed before — was Mark Todd. The Mark Todd who was appointed last year and has been serving as DeKalb County treasurer is the same Mark Todd who left his position as vice-president of Farmers and Traders State Bank just a few months before the bank got into trouble with regulators.
And the same Mark Todd is now running for a term as county treasurer, and so far is running unopposed. Terrific.