27th Bank In Illinois Shut Down

WASHINGTON (AP) -- Regulators have shut down a small bank in Illinois, lifting to the number of U.S. bank failures so far this year to 27 after 157 succumbed in 2010 to the gutted economy and mounting bad loans.

The Federal Deposit Insurance Corp. have seized Western Springs National Bank and Trust, in Western Springs, Ill., with $186.8 million in assets and $181.9 million in deposits. Heartland Bank and Trust Co., based in Bloomington, Ill., will assume the assets and deposits of the failed bank.

In addition, the FDIC and Heartland Bank and Trust have agreed to share losses on $100.8 million of Western Springs National Bank and Trust's loans and other assets.

The failure of Western Springs National Bank is expected to cost the deposit insurance fund $31 million.

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