Mendota bank takes over for closed Shabbona facility
First State Bank of Mendota has added two new branches in Shabbona, both former locations of the Farmers and Traders State Bank of Shabbona, which was closed at end of business Friday by state regulators.
The Illinois Department of Financial and Professional Regulation appointed the Federal Deposit Insurance Corporation as receiver to protect depositors. The FDIC arranged with First State Bank to assume all deposits of Farmers and Traders.
The two Farmers and Traders locations have reopened as First State Bank branches. Depositors of the closed institution automatically became First State Bankdepositors and may continue using their checkbooks and ATM cards. Farmers and Traders customers should use only those two banks for now, according to the FDIC. Loan customers should continue to make their payments as usual.
Deposits will continue to be insured by the FDIC.
As of March 31, 2012, Farmers and Traders State Bank had approximately $43.1 million in total assets and $42.3 million in total deposits. In addition to assuming all of the deposits, First State Bank agreed to purchase essentially all of the failed bank's assets.
Customers with questions may call the FDIC toll-free at 1-800-640-2607 or visit the FDIC website.