PALOS HEIGHTS, Ill. (
) -- An Illinois bank failed Friday, bringing the total number of U.S. bank closures for 2010 to 110.
It was the second week in which regulators shuttered only one bank.
The Illinois Department of Financial and Professional Regulation closed
Palos Bank and Trust Company
of Palos Heights, Ill. and appointed the Federal Deposit Insurance Corp. receiver.
The failed bank had $493 million in total assets and was included in
of undercapitalized institutions, based on second-quarter regulatory data provided by
As of June 30, Palos Bank and Trust's ratio of nonperforming assets, including nonaccrual loans, loans past due 90 days or more and repossessed real estate, made up a crippling 14.38% of total assets.
The FDIC sold the failed institution's $468 million in deposits for a 1% premium to
First Midwest Bank
of Itasca, Ill., which is the main subsidiary of
First Midwest Bancorp
. In addition to the deposits, First Midwest Bank acquired the failed bank's assets, with the FDIC agreeing to cover 80% of losses on $344 of the riskier assets.
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The failed bank's five offices were set to reopen Saturday as First Midwest. The FDIC estimated the cost of the Palos Bank and Trust's failure to the deposit insurance fund would be $72 million.
Ongoing Bank Failure Coverage
With 14 bank closures in Illinois this year, the state has the second highest number of bank failures for 2010. Florida is No. 1 with 20. Since the beginning of 2008, there have been 36 failures in Illinois, the same number as Florida. Only Georgia has more: 41.
All previous bank and thrift failures since the beginning of 2008 are detailed in
interactive bank failure map:
The bank failure map is color-coded, with states having the greatest number of failures highlighted in red, and states with no failures in gray. By moving your mouse over a state you can see its combined 2008-2010 totals. Clicking on a state will open a detailed map pinpointing the locations of the failures and and providing additional information about each one.
Written by Philip van Doorn in Jupiter, Fla.
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.