SHABBONA – Farmers and Traders State Bank in Shabbona was closed Friday by the Illinois Department of Financial and Professional Regulation.

The Federal Deposit Insurance Corporation has been appointed as receiver, according to a news release from the state's Department of Financial and Professional Regulation. The bank is the 27th FDIC-insured institution to fail in the nation this year, and the second in Illinois. The last FDIC-insured institution closed in Illinois was Premier Bank in Wilmette, on March 23.

To protect the depositors, the FDIC entered into a purchase and assumption agreement with First State Bank of Mendota to assume all of the deposits of Farmers and Traders State Bank, according to the news release.