Feds shut down Park National

Federal regulators on Friday shut down Chicago-based Park National Bank — which had three branches in Naperville and one in Lisle — and Community Bank, as the still-weak economy produces a stream of loan defaults.

The two banks were units of privately held FBOP Corp., a Chicago-based bank holding company.

The Federal Deposit Insurance Corporation said U.S. Bancorp in Minneapolis agreed to assume the deposits and most of the assets of the banks, which were among nine closed by the FDIC on Friday. The banks are mostly in the West and had combined assets of $19.4 billion at the end of September.

All Park National branch banks and Community Bank reopened Saturday as U.S. Bank branches with business as usual, according to U.S. Bancorp.

Rick Hartnack, vice chairman of consumer banking for U.S. Bancorp, said the acquisitions complement its existing operations in California, Illinois and Arizona.

"California and Chicago turned out to be two of the most attractive markets in the country where we just didn't have the branch density that we wanted," he said.

FDIC spokesman David Barr said that because U.S. Bank assumed all the deposits, the plan will feel like a merger for customers.

"It's not a merger, but it walks like a merger and quacks like a merger," he said.

The closings boost the number of failed U.S. banks this year to 115. The nine banks closed Friday were the most the agency has shut in one day since the financial crisis began taking down banks last year.

In 1989, at the height of the savings-and-loan crisis, the FDIC closed 534 banks, or about 10 a week.