Benchmark Bank, with branches in Seneca, Ransom and Verona, was closed Friday by the Illinois Department of Financial and Professional Regulation and was reopened Saturday as branches of MB Financial Bank.

The Illinois Department of Financial and Professional Regulation appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with MB Financial Bank, Chicago, to assume deposits of the failed bank.

Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.

Customers should continue to use their existing branch until they receive notice from MB that it has completed systems changes to allow other MB branches to process their accounts as well. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. Customers can continue to use their same checks, ATM cards and debit cards until notified. All direct deposits, including Social Security checks, will continue as usual.

As of Nov. 16, Benchmark Bank had total assets of $170 million and total deposits of $181 million. MB did not pay the FDIC a premium for the deposits of Benchmark Bank. In addition to assuming all deposits of the failed bank, MB agreed to purchase essentially all of the assets.

The FDIC and MB entered into a loss-share transaction on $139 million of Benchmark Bank's assets. MB will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

The FDIC estimates the cost to the Deposit Insurance Fund will be $64 million. MB's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives.

Benchmark Bank is the 129th FDIC-insured institution to fail in the nation this year and the 20th in Illinois. The last FDIC-insured institution closed in the state was Park National Bank, Chicago, on Oct. 30.

For more information, call the FDIC at 800-356-1848 or visit www.fdic.gov/bank/individual/failed/benchmark-il.html.