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OFFICE OF THE COMPTROLLER OF THE CURRENCY CLOSES EAGLE BANK OF CHAMPAIGN COUNTY, NATIONAL ASSOCIATION, RANTOUL, ILL; FDIC APPOINTED RECEIVER

 WASHINGTON, July 1 /PRNewswire/ -- At 4 p.m. EDT today, the Office of the Comptroller of the Currency (OCC) closed Eagle Bank of Champaign County, National Association, Rantoul, Ill., and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
 The FDIC Improvement Act of 1991 gives the OCC authority to appoint the FDIC receiver for national banks that fail to meet specific criteria. The OCC used this authority when it found that Eagle Bank was critically undercapitalized -- that is, it had less than 2 percent tangible equity capital. The OCC also found that the bank was in an unsafe and unsound condition to conduct business, had incurred losses that depleted substantially all of its capital, and had no reasonable prospect to become adequately capitalized without federal assistance. Additionally, the bank failed to submit an acceptable capital restoration plan to the OCC. In light of these findings, the OCC determined it was necessary to close the bank and appoint the FDIC as receiver to protect the interests of the bank's insured depositors.
 Eagle Bank of Champaign County received a national bank charter on May 20, 1899. The bank first became a matter of concern to the OCC in late 1990. The bank had inadequate loan underwriting standards, declining asset quality, poor earnings and a deteriorating capital position. Supervision by the board of directors and former management was ineffective. In early 1991, the OCC obtained a commitment from the board to address the bank's problems. Although the board made changes in management, the deterioration continued. The board of directors entered into a consent order with the OCC in January 1992, and further changes in management occurred later in 1992. Even after the change in management, loan and operating losses continued to erode the bank's capital, and the board of directors was unable to restore capital.
 On March 31, 1993, the bank had total assets of approximately $20 million.
 Information about the FDIC's resolution of the bank will be released later by the FDIC.
 -0- 7/1/93
 /CONTACT: Frank D. Vance Jr. of the Office of the Comptroller of the Currency, 202-874-4700/


CO: Office of the Comptroller of the Currency; Eagle Bank of Champaign
 County, National Association ST: Illinois IN: FIN SU: EXE


TW-DC -- DC050 -- 7953 07/01/93 17:12 EDT
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Publication:PR Newswire
Date:Jul 1, 1993
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