Corus Bank, Brickwell Community Bank and Venture Bank Fail—Pushing Total to 92 Bank Failures in 2009.
Regulators closed down a large Illinois-based bank on Friday, marking one of the biggest collapses of the year as well as two other smaller failures, pushing the number of bank failures in 2009 to 92.
Corus Bank was closed down by the Office of the Comptroller of the Currency on Friday, marking the 16th bank failure in the state of Illinois. Corus Bank had total deposits of about $7 billion and total assets of around $7 billion. Corus Bank operated 11 branches and $3 billion of its assets will be subsumed by MB Financial Bank, also based in Chicago. Much of Corus’ assets are condominium loans which have failed to perform since the real estate market hit hard times.
Two smaller banks were also shuttered on Friday night. Brickwell Community Bank, which had one branch in Woodbury, MN was closed down by state officials. Cortrust bank, based out of Mitchell, SD will take over the bank’s $63 million and assets and will be purchasing almost all of Brickwell’s $72 million in assets.
Venture Bank of Lacy, WA was also closed by state regulators and put into FDIC receivership. First-Citizens Bank & Trust Company in Raleigh, N.C., took over all of the deposits of Venture Bank. Venture Bank had a total of 18 branches and will reopen on Saturday as branches of First-Citizens Bank & Trust Company. As of July 28th, Venture Bank had a total of $970 million in assets and $903 million in deposits. First-Citizens bank will purchase about $874 million of the bank’s failed assets.
Out of Friday’s bank failures, the FDIC’s deposit insurance fund will likely suffer about a $2 billion hit.
