2010 U.S. Bank Failures Now at 57; Cost to FDIC tops $970 Million

U.S. regulators closed seven Illinois banks on Friday, bringing to 57 the number of U.S. banks that have failed this year, after 140 failures in 2009. The Federal Deposit Insurance Corp. said the total cost to its deposit insurance fund from Friday’s failures topped $970 million.

State banking regulators closed Chicago’s Broadway Bank, owned by the family of Alexi Giannoulias, who is locked in a midterm-election battle with U.S. Rep. Mark Kirk (R., Ill.) for President Obama’s old Senate seat. Mr. Giannoulias’s role at the scandal-plagued institution, which had total assets of about $1.2 billion as of the end of 2009, has become a central issue in the race.

MB Financial Bank of Chicago plans to purchase Broadway Bank’s deposits and essentially all of its assets.

The largest bank to fail Friday was Amcore Bank in Rockford, Ill. The bank, which had 58 branches, had total assets of $3.8 billion and total deposits of $3.4 billion. The FDIC said Harris National Association plans to purchase all of Amcore Bank’s deposits as well as most of its assets. Harris National Association and the FDIC agreed to share in future losses on $2 billion of those assets.

Also failing Friday were Chicago-based New Century Bank, Citizens Bank & Trust and Lincoln Park Savings Bank. State regulators also closed Peotone Bank & Trust Co. in Peotone, Ill., and Wheatland Bank in Naperville, Ill.

In addition to the Broadway deal, MB Financial also bought the $492 million of total assets from New Century Bank, at no premium. MB Financial and the FDIC entered into an agreement in which the agency will agree to share losses on $429.1 million of New Century’s assets.

The FDIC said Citizens Bank & Trust’s $74.5 million of deposits was sold to Republic Bank of Oak Brook, Ill. Citizens Bank & Trust, which had one branch, had total assets of about $77.3 million at the end of 2009, the FDIC said. The FDIC said it will hold on to most of Citizen’s assets.

Northbrook Bank & Trust Co. of Northbrook, Ill., plans to purchase Lincoln Park Savings Bank’s of $171.5 million total deposits at a premium of 0.4%. Northbrook Bank also agreed to purchase all of Lincoln Park Savings Bank’s assets. Lincoln Park had $199.9 million in assets at the end of 2009, the FDIC said.

The FDIC sold Peotone Bank & Trust’s $127 million in deposits to First Midwest Bank of Itasca, Ill., as well as the failed bank’s $130.2 million in total assets. First Midwest Bank and the FDIC entered into an agreement in which the agency will agree to share losses on $57.5 million of Peotone Bank & Trust’s assets.

Additionally, all of Wheatland Bank’s deposits and assets were sold to Wheaton Bank & Trust of Wheaton, Ill. Wheatland Bank had total assets of $437.2 million and total deposits of $438.5 million at the end of 2009, the FDIC said. Wheaton Bank & Trust and the FDIC entered into an agreement in which the agency will agree to share losses on $300.2 million of the failed bank’s assets.