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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'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.


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.

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