Citizens National Bank, Macomb, IL

Citizens National Bank of Macomb, IL, was seized by federal banking regulators, becoming the second Illinois bank to fail today and the fifth in the state so far this year.

Citizens will reopen Saturday as branches of Morton Community Bank of Morton.

Citizens has total deposits of approximately $400 million. Morton Community will purchase all deposits, except about $200 million in brokered deposits.

Customers of both banks should continue to use their existing branches until Morton can fully integrate the deposit records of Citizens, the FDIC said in a statement.

The FDIC estimates that the cost to its deposit insurance fund will be $106 million.

Citizens is the 36th FDIC-insured institution to fail in the nation this year. It was closed by the U.S. Office of the Comptroller of the Currency.

Last month, the Chicago Tribune reported that Citizens was among the weaker banks in the Chicago area, as graded by ratings service provider TheStreet.com.

The last FDIC-insured institution to be closed in the state was Strategic Capital Bank of Champaign earlier today.

If you should need more information see the FDIC web page.

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