Illinois: First Midwest Bank Assumes Deposits of Waukegan Savings Bank

Aug 6 - Waukegan Savings Bank, Waukegan, Ill., has been closed by the Illinois Department of Financial and Professional Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Midwest Bank, Itasca, Ill., to assume all of the deposits of Waukegan Savings Bank.

As of March 31, 2012, Waukegan Savings Bank had approximately $88.9 million in total assets and $77.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Midwest Bank agreed to purchase essentially all of the failed bank's assets.

Customers with questions about the transaction should call the FDIC toll-free at 800-823-3215. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/waukegan.html.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $19.8 million. Compared to other alternatives, First Midwest Bank's acquisition was the least costly resolution for the FDIC's DIF. Waukegan Savings Bank is the 40th FDIC-insured institution to fail in the nation this year, and the sixth in Illinois. The last FDIC-insured institution closed in the state was Second Federal Savings and Loan Association of Chicago on July 20, 2012.