This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Seven Illinois Banks Fail

Stocks in this article: AMFI

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 - Get Report).

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 - Get Report).

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.40 +19.24 0.96%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

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