US regulators closed one bank in Illinois on Friday, bringing the total number of closures this year to 81. The Federal Deposit Insurance Corp (FDIC) said All American Bank of Des Plaines, Illinois, was closed, with the FDIC named its receiver. The FDIC said International Bank of Chicago would assume all its deposits.
The sole branch of All American bank will reopen as a branch of International Bank of Chicago and depositors of All American will automatically become depositors of International Bank of Chicago. The FDIC said it would continue to insure all deposits so there is no need for customers to change their banking relationships in order to keep their deposit insurance.
As of June 30, All American had about $37.8 million in total assets and $33.4 million in deposits. Most of the banks that have failed so far this year have had less than $1 billion in assets, illustrating the problems facing small banks. Many of community banks continue to be hit hard by the sluggish economy and their exposure to the struggling commercial real estate market. FDIC officials, however, expect there to be fewer failures this year than in 2010 when 157 banks were closed.
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