13th Bank Fails in 2012; Depositors May Suffer

NEW YORK ( TheStreet) -- State regulators on Friday closed New City Bank of Chicago, bringing this year's total number of bail failures to 13.

The failed bank was previously included in TheStreet's fourth-quarter Bank Watch List of undercapitalized institutions, based on regulatory data provided by HighlineFI.

New City Bank had $71.2 million in total assets and $72.4 million in deposits when it was taken over by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corp. as receiver for the failed institution.

Since the FDIC was unable to find a buyer for New City Bank, the agency announced that it would mail checks to deposits for the amount of their insured deposits.

New City Bank was actually negatively capitalized as of Dec. 30, and according to its regulatory call report, the bank had nearly $2.8 million in time deposits with balances over $250,000. However, since a customer could easily have more than the basic limit of $250,000 in insured deposits -- because of joint account registrations, for example -- there might not be any uninsured deposit losses for the failed bank's customers.

The FDIC estimated the cost of New City Bank's failure to the deposit insurance fund would be $17.4 million.

Thorough Bank Failure Coverage

New City Bank was the third bank to fail in Illinois this year, following nine failures in the state during 2011.

All 425 previous bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2011 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

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-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
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.

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