PRINCETON – Federal banking regulators designated Citizens First National Bank as a failed bank Friday afternoon, ending its business and selling its assets.
Citizens Bank customers can access their money by writing checks or using ATM or debit cards. All checks drawn on the bank will be honored, the Federal Deposit Insurance Corp. said, and all loan customers should continue to make their payments as usual. Rates on loans secured through Citizens Bank will not change.
Citizens First National Bank was based in Princeton, with 21 branches in 17 communities including Genoa, Sandwich and Somonauk, and about 300 employees.
The bank branches will reopen today as branches of Heartland Bank and Trust Company of Bloomington, which has agreed to assume Citizens Bank’s assets, including about $870 million in total deposits, the FDIC said in a news release Friday evening. Customers of Citizens Bank are now customers of Heartland Bank.
Banks fail when the value of their assets depreciates to be less than the value of their liabilities. The FDIC insures individual depositors up to $250,000 in the event of a bank failure.
All shares in Citizens Bank were held by an independent holding company, the FDIC said.
Customers with questions can call the FDIC at 800-830-4698. The phone number is operational today from 9 a.m. to 6 p.m.; Sunday from noon to 6 p.m.; Monday from 8 a.m. to 8 p.m.; and thereafter from 9 a.m. to 5 p.m.
More information is also available online at www.FDIC.gov.