1st bank failure of the year 2009

National Bank of Commerce in Berkeley, Ill becomes the first bank to fall in 2009.

NEW YORK (CNNMoney.com) -- The National Bank of Commerce in Berkeley, Ill. was shuttered Friday by federal regulators according Federal Deposit Insurance Corporation.

National Bank of Commerce with total assets of $430.9 million, and total deposits of $402.1 million is the first bank to fail in 2009.

FDIC has entered into a purchase and assumption agreement with Republic Bank of Chicago, Oak Brook, Illinois, to assume all of the deposits of National Bank of Commerce.

Republic Bank intends to purchase about $366.6 million of National Bank of Commerce's assets at a discount of $44.9 million, according to the FDIC, which will retain the rest for later distribution.

The FDIC said that the National Bank of Commerce's two branches will reopen Saturday as branches of Republic Bank of Chicago.

Clients who held money with National Bank of Commerce will automatically become Republic Bank customers, and their deposits will continue to be insured by the FDIC.

National Bank of Commerce placed a notice on its website informing customers of the transition and directing them to the Republic Bank website.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $97.1 million.

The FDIC also noted that checks, ATMs and debit cards will continue to function normally over the weekend, and that those who borrowed money from National Bank of Commerce should continue making loan payments.

Bank failures have risen dramatically as the global financial crisis unfolded. Last year 25 banks closed, compared to only three bank failures on 2007, and none in 2006 and 2005.