FDIC Swoops into Illinois and Slams the Door on Seven Banks

The FDIC was visiting Illinois on Friday and by the end of the day closed the doors on six Illinois based banks.  The banks placed into receivership with the FDIC included New Century Bank based in Chicago, Citizens Bank & Trust Company of Chicago, Broadway Bank  based in Chicago, Lincoln Park Savings Bank in Chicago, Amcore Bank based in Rockford, Peotone Bank and Trust Company headquartered in Peotone and Wheatland Bank of Naperville. 

These bank closures bring the total number of failed banks in 2010 to 57.  The FDIC estimates that the cost to the Deposit Insurance Fund for handling the closures and transfers of assets and deposits to the acquiring institutions at $973.9 million.

For each of the banks closed on Friday, the FDIC was able to find a willing bank to assume the operations of the failed the entities.  In the case of Wheaton Bank, all deposit accounts, excluding certain brokered deposits, have been transferred to Wheaton Bank & Trust of Wheaton, IL.  For Peotone Bank & Trust, all deposit accounts, excluding certain brokered deposits, have been transferred to First Midwest Bank headquartered in Itasca, IL.  Lincoln Park Savings Bank has had all of their deposit accounts transferred to Northbrook Bank and Trust Company based in Northbrook, IL. 

In the cases of New Century Bank and Broadway Bank, the deposit accounts have been transferred to MB Financial Bank of Chicago, IL with the exception of certain brokered deposits at Broadway Bank.  Citizens Bank & Trust Company has had all of their deposit accounts transferred to Republic Bank of Chicago based in Oak Brook, IL.  And Amcore Bank has had its deposit accounts, excluding certain brokered deposits, transferred to Harris National Association headquartered in Chicago, IL.

All bank branches from the failed banks will reopen under the name of the acquiring financial institutions.  The banks will maintain their regular business hours, and consumers and customers may continue to use the services they previously had access to, such as safe deposit boxes, night deposit boxes, wire services, etc.

Amcore Bank was the largest of the Illinois banks falling apart with 58 bank branches and approximately $3.8 billion in assets and $3.4 billion in deposits.  Broadway Bank had approximately $1.2 billion in assets and $1.1 billion in deposits at four bank locations.  New Century Bank was the third biggest of the seven failures with three bank branches and approximately $485.6 million in assets and $492.0 million in deposits.  Wheatland Bank was close behind with approximately $437.2 million in assets and approximately $438.5 million in deposits at just one bank location.  Lincoln Park Savings Bank had four bank branches with approximately $199.9 million in assets and $171.5 million in deposits.  Peotone Bank and Trust Company had approximately $130.2 million in assets and $127.0 million in deposits at two bank locations.  And the smallest failure in Illinois last week was Citizens Bank & Trust Company of Chicago with one location and approximately $77.3 million in assets and $74.5 million in deposits.

The total loss to the Deposit Insurance Fund of $973.9 million is based on estimated losses per institution.  The biggest loser and draw on the Deposit Insurance Fund is Broadway Bank with an estimated cost of $394.3 million.  The FDIC estimates that the cost will be $220.3 million for the losses at Amcore Bank.  New Century is estimated to cost the Deposit Insurance Fund $125.3 million.  Wheaton Bank is estimated at $133.0 million.  Lincoln Park Savings Bank is scheduled to be $48.4 million.  The FDIC estimates that the cost to the Deposit Insurance Fund will be $31.7 million for Peotone Bank and Trust.  The lightest hit comes from Citizens Bank & Trust with an estimated cost of $20.9 million.

Additional information regarding these institutions can be found at the FDIC website regarding failed bank information.

Tags: bank branches, bank closings, bank locations, Banks, failed banks, FDIC, First Midwest Bank, Illinois banks, MB Financial Bank

This entry was posted on Sunday, April 25th, 2010 at 6:28 pm and is filed under Money Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.