Small banks in Ill., Minn. shuttered

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WASHINGTON (AP) — Regulators have shut down two small banks in Illinois and Minnesota, the second and third bank failures of 2010 following 140 closures last year amid the weak economy and mounting loan defaults.

The Federal Deposit Insurance Corp. took over St. Stephen State Bank of St. Stephen, Minn., with $24.7 million in assets and $23.4 million in deposits, and Town Community Bank and Trust, based in Antioch, Ill., with $69.6 million in assets and $67.4 million in deposits.

First State Bank of St. Joseph, Minn., agreed to assume the assets and deposits of St. Stephen State Bank. First American Bank, based in Elk Grove Village, Ill., is buying the deposits and $67.6 million of the assets of Town Community Bank and Trust. The FDIC will retain the rest for sale.