Another bank bit the dust Thursday upping the total of failed banks in the US to 46 just for this year, the Federal Deposit Insurance Corporation announced. The latest to fall – John Warner Bank, a regional bank based in Clinton, Illinois.
As for John Warner Bank, the State Bank of Lincoln in Lincoln, Illinois will take over their deposits. Three John Warner branches will reopen as State Bank of Lincoln. Warner Bank depositors will automatically have State Bank of Lincoln accounts.
Local banks have struggled to keep themselves afloat having been affected by the rise of unemployment and the steep fall of real estate value, eating away at banks’ mortgage-backed assets and increasing the number of people who default loans.
Assets of failed banks totaled $70 million and total deposits amounted to $64 million as of April. While the government has channeled funds to save larger financial institutions, many small banks are left to struggle with the economic downturn.
Source: CNN
