Fayette County Bank becomes year's sixth failure

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Fayette County Bank in St. Elmo, Ill., was shut down Friday by the Illinois Department of Financial and Professional Regulation, becoming the sixth failure this year.

United Fidelity Bank in Evansville, Ind., agreed to assume all of Fayette County Bank’s deposits. United will also purchase $28.9 million of Fayette County Bank’s $34.4 million in assets.

The Federal Deposit Insurance Corp. will retain the remaining assets for later disposition.

Fayette County Bank had one branch. In comparison, the recently failed Guaranty Bank had 119 branches in five states.

The $574 million-asset United said in a press release Friday that it expects the purchase to be immediately accretive to its earnings, excluding one-time charges.

The FDIC estimated that the failure will cost the Deposit Insurance Fund about $10 million.

Fayette County Bank is the second bank to fail in Illinois this year. The black-owned Seaway Bank was closed in January.

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