Corus Bank NA
was finally shut down by the Office of the Comptroller of the Currency late Friday, ending a long slide for the condominium lender and bringing the total of failed banks and thrifts this year to 90.
The Federal Deposit Insurance Corp. was appointed receiver of Corus, a subsidiary of
, and sold all of the bank's deposits to
MB Financial Bank
, a subsidiary of
(MBFI - Get Report)
. Corus's eleven branches were set to reopen during normal business hours as branches of MB Financial Bank.
The acquisition was MB Financial's second in a week, following its takeover of the failed
of Oak Forest, Ill.
Corus had about $7 billion in total assets and $7 billion in deposits. In addition to the deposits and branches, MB Financial Bank took over about $3 billion in deposits. The FDIC said it expected to sell most of the remaining assets in a private transaction over the next 30 days, and estimated the cost to the deposit insurance fund would be $1.7 billion.
The OCC's action followed a published
New York Times
report published Thursday, saying that the
was looking to make separate deals to sell Corus's deposits and loans.
has covered the Chicago lender's declining loan quality and dwindling capital since August 2007, when Corus Bancorp's
seemed threatened after the holding company paid out a special dividend of $1 a share, while problems were mounting in the bank's condominium construction and conversion portfolio.