This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Seven Illinois Banks Fail

CHICAGO (TheStreet) -- Regulators shut down seven Illinois banks Friday, bringing this year's tally of failed U.S. banks and thrifts to 57.

The Federal Deposit Insurance Corp. found buyers for all of the failed institutions, and the failed banks' branches were all expected to reopen Saturday.

All of the failed institutions were included in TheStreet.com's list of undercapitalized banks.

Ten banks in Illinois have failed this year, the most for any state, followed by Florida with nine -- including three bank failures last week -- and Georgia with seven.

Amcore

The Office of the Comptroller of the Currency closed Amcore Bank NA, the main subsidiary of Amcore Financial (AMFI). Amcore had $3.8 billion in total assets and 58 branches, making it the largest failure on Friday.

The FDIC was appointed receiver and sold all of Amcore's deposits for a small premium to Harris NA of Chicago. Harris is a subsidiary of Bank of Montreal (BMO).

The FDIC agreed to share in losses on $2 billion of the assets acquired by Harris and estimated the cost to the deposit insurance fund would be $220.3 million.

The remaining six failed banks were all shut down by the Illinois Department of Financial and Professional Regulation.

MB Financial Scoops Up Two More

The FDIC arranged for Broadway Bank and New Century Bank, both of Chicago, to be taken over by MB Financial Bank NA, the main subsidiary of MB Financial (MBFI).

MB Financial, which is also headquartered in Chicago, paid no premium to the FDIC for the failed banks' deposits.

Broadway Bank had total assets of $1.2 billion, and the FDIC agreed to share in losses on $878 million, projecting a cost of $394.3 million to its deposit insurance fund.

New Century Bank had roughly $486 million in assets. The FDIC agreed to share in losses on $429 million and projected the cost to the insurance fund would be $125.3 million.

MB Financial has now acquired six failed institutions during 2009 and 2010, the largest of which was Corus Bank, which failed in September 2009.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs