WASHINGTON — The Bank of Commerce in Wood Dale, Ill., became the nation's 26th failed bank of the year late Friday.
The Federal Deposit Insurance Corp. said the operations of the $163 million-asset bank were sold to Advantage National Bank Group in Elk Grove Village, Ill. Advantage National agreed to pay a 0.1% premium to assume all of the failed bank's $161 million in deposits. The acquirer will also purchase essentially all of The Bank of Commerce's assets.
The FDIC and Advantage National agreed to share losses on about $146 million of the failed bank's assets. The failure, the third in Illinois this year, was estimated to cost the FDIC just under $42 million.
As part of the transaction, the FDIC will also get a "value appreciation" instrument, allowing the agency to share in the upside — further mitigating its losses — if Advantage National's overall value increases by a certain amount as a result of the acquisition.