7 banks failed last week bringing the total number of US Bank failures to 57 for the year. These 7 institutions had a total of $6.3 Billion in assets and all 7 banks were located in the state of Illinois. The following banks acquired the assets of these failed institutions: First Midwest Bank headquartered in Itasca, IL; Northbrook Bank and Trust Company headquartered in Northbrook, IL ; Republic Bank of Chicago headquartered in Oak Brook, IL; MB Financial Bank headquartered in Chicago, IL; Harris National Association headquartered in Chicago, IL and Wheaton Bank & Trust headquartered in Naperville, Illinois. Losses in Commercial Real Estate loans are expected to be the cause of hundreds of bank failures in the next few years. Read the RRT News article (www.rttnews.com) below for more detail on these recent bank failures.
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Regulators on Friday announced the closure of seven banks in Illinois, taking the tally of total number of bank closures in the current year to 57. The banks closed are Amcore Bank (AMFI), Broadway Bank, Wheatland Bank, Peotone Bank and Trust Company, Lincoln Park Savings Bank, New Century Bank and Citizens Bank&Trust Company of Chicago. The Federal Deposit Insurance Corp. or FDIC estimates the cost of the seven bank closures to its Deposit Insurance Fund or DIF will be $973.9 million.
Amcore Bank (AMFI), based in Rockford, Illinois was the largest among the bank to be closed on Friday. The FDIC said it entered into a purchase and assumption agreement with Harris National Association, based in Chicago, Illinois, to assume all of the deposits of Amcore. The 58 branches of Amcore reopened on Saturday as branches of Harris National Association, a subsidiary of Toronto-based BMO Financial Group. (BMO). As of December 31, 2009, Amcore had approximately $3.8 billion in total assets and $3.4 billion in total deposits. Harris National Association will pay the FDIC a premium of 0.01% to assume all of the deposits of Amcore. In addition to assuming all of the deposits of the failed bank, Harris National Association agreed to purchase essentially all of the assets. The FDIC and Harris National Association entered into a loss-share transaction on $2.0 billion of Amcore’s assets. Harris National Association will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost of Amcore’s closure to the agency’s Deposit Insurance Fund or DIF will be $220.3 million.
Broadway Bank, Chicago, Illinois, owned by the family of Democratic U.S. Senate candidate and Illinois Treasurer Alexi Giannoulias – The FDIC entered into a purchase and assumption agreement with MB Financial Bank (MBFI) to assume all of the deposits of Broadway Bank. The four branches of Broadway Bank reopened on Saturday as branches of MB Financial. As of December 31, 2009, Broadway Bank had approximately $1.2 billion in total assets and $1.1 billion in total deposits. MB Financial did not pay the FDIC a premium for the deposits of Broadway Bank. In addition to assuming all of the deposits of the failed bank, MB Financial agreed to purchase essentially all of the assets of Broadway Bank. The FDIC and MB Financial entered into a loss-share transaction on $878.4 million of Broadway Bank’s assets. The FDIC estimates that the cost of the closure of Broadway Bank to the DIF will be $394.3 million.
New Century Bank, based in Chicago, Illinois – The FDIC entered into a purchase and assumption agreement with MB Financial Bank to assume all of the deposits of New Century Bank. The three branches of New Century Bank reopened on Saturday as branches of MB Financial. As of December 31, 2009, New Century Bank had approximately $485.6 million in total assets and $492.0 million in total deposits. MB Financial did not pay the FDIC a premium for the deposits of New Century Bank. In addition to assuming all of the deposits of the failed bank, MB Financial Bank agreed to purchase essentially all of the assets. The FDIC and MB Financial entered into a loss-share transaction on $429.1 million of New Century Bank’s assets. MB Financial will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost to the DIF will be $125.3 million.
Wheatland Bank of Naperville, Illinois – To protect the bank’s depositors, the FDIC entered into a purchase and assumption agreement with Wheaton Bank & Trust, also based in Illinois, to assume all of the deposits of Wheatland Bank. The sole branch of Wheatland Bank reopened on Saturday as a branch of Wheaton Bank and depositors of Wheatland Bank will automatically become depositors of Wheaton. As of December 31, 2009, Wheatland Bank had approximately $437.2 million in total assets and $438.5 million in total deposits. Wheaton Bank will pay the FDIC a premium of 0.4% to assume all of the deposits of Wheatland Bank. In addition to assuming all of the deposits of the failed bank, Wheaton Bank agreed to purchase essentially all of the assets. The FDIC and Wheaton Bank entered into a loss-share transaction on $300.2 million of Wheatland Bank’s assets. Wheaton Bank will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost of the closure to the DIF will be $133.0 million.
Peotone Bank and Trust Company, Peotone, Illinois – To protect the depositors of the bank, the FDIC entered into a purchase and assumption agreement with First Midwest Bank (FMBI), also based in Illinois, to assume all of the deposits of Peotone Bank. The two branches of Peotone Bank reopened on Saturday as branches of First Midwest Bank As of December 31, 2009, Peotone Bank and Trust Company had approximately $130.2 million in total assets and $127.0 million in total deposits. First Midwest Bank will pay the FDIC a premium of 1.0% to assume all of the deposits of Peotone Bank and Trust Company. In addition to assuming all of the deposits of the failed bank, First Midwest Bank agreed to purchase essentially all of the assets. The FDIC and First Midwest Bank entered into a loss-share transaction on $57.5 million of Peotone Bank and Trust Company’s assets. First Midwest Bank will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost of the closure of Peotone Bank to its DIF will be $31.7 million.
Lincoln Park Savings Bank, based in Chicago, Illinois – The FDIC entered into a purchase and assumption agreement with Northbrook Bank and Trust Company, based in Northbrook, Illinois, to assume all of the deposits of Lincoln Park Savings Bank. The four branches of Lincoln Park Savings Bank reopened on Saturday as branches of Northbrook Bank and Trust Company. As of December 31, 2009, Lincoln Park Savings Bank had approximately $199.9 million in total assets and $171.5 million in total deposits. Northbrook Bank will pay the FDIC a premium of 0.4% to assume all of the deposits of Lincoln Park Savings Bank. In addition to assuming all of the deposits of the failed bank, Northbrook Bank agreed to buy essentially all of the assets. The FDIC and Northbrook Bank entered into a loss-share transaction on $141.5 million of Lincoln Park Savings Bank’s assets. Northbrook Bank will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates that the cost of the closure of Lincoln Park to its DIF will be $48.4 million.
Citizens Bank&Trust Company of Chicago, based in Chicago, Illinois – To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank of Chicago, based in Oak Brook, Illinois, to assume all of the deposits of Citizens Bank&Trust Co. The sole branch of Citizens Bank&Trust Co. reopened on Saturday as a branch of Republic Bank. As of December 31, 2009, Citizens Bank&Trust Co. had approximately $77.3 million in total assets and $74.5 million in total deposits. Republic Bank will pay the FDIC a premium of 0.00013% to assume all of the deposits of Citizens Bank&Trust Co. The FDIC said that as receiver, it will retain most of the assets from Citizens Bank & Trust Co. for later disposition. The FDIC estimates that the cost of the closure of Citizens Bank & Trust to the DIF will be $20.9 million. So far in the current year, the FDIC has shuttered ten banks in Illinois.
