1 Bank, 1 Credit Union Close

2011 Tally of Failed Institutions: 26
1 Bank, 1 Credit Union Close
State and federal regulators closed one bank and one credit union on Friday, Feb. 25.

These latest failures raise to 26 the number of failed institutions so far in 2011.

The newest closings:

Valley Community Bank, St. Charles, Ill.

Valley Community Bank, St. Charles, Illinois, was closed by the Illinois Department of Financial and Professional Regulation - Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank, Mendota, Illinois, to assume all of the deposits of Valley Community Bank.

The five branches of Valley Community Bank were to reopen during their normal business hours beginning Saturday, February 26, as branches of First State Bank. Depositors of Valley Community Bank will automatically become depositors of First State Bank.

As of December 31, 2010, Valley Community Bank had approximately $123.8 million in total assets and $124.2 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.8 million.

NYC OTB Federal Credit Union, N.Y.

The National Credit Union Administration (NCUA) placed NYC OTB Federal Credit Union, located in New York, New York, into liquidation.

NCUA made the decision to close NYC OTB Federal Credit Union and discontinue its operation after determining the credit union is insolvent and has no prospects for restoring viable operations.

At the time of the liquidation, the $1,456,884 credit union, chartered in 1972, served 868 members of the New York City Off-Track Betting Corporation in New York City.

This is the third federally insured credit union liquidation in 2011.


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