FDIC Friday: Corus Goes Down, Two Others
September 12th, 2009Via: Bloomberg:
Corus Bankshares Inc.’s Corus Bank, the Chicago lender crippled by construction loans for condominiums, was seized by regulators and its $7 billion in deposits were acquired by MB Financial Inc.
MB Financial Bank, which has more than 80 branches in the Chicago area, agreed to pay a premium of 0.2 percent for the deposits, according to a statement released today by the Federal Deposit Insurance Corp. Corus was seized by the Office of the Comptroller of the Currency and the FDIC was named receiver.
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Regulators are shutting U.S. banks at the fastest pace in 17 years, with 92 failing so far this year. A total of 416 are on the FDIC’s “problem bank” list after failing tests for asset quality, liquidity and earnings in the second quarter, the most since June 1994.
Corus Assets
MB Financial will assume about $3 billion of Corus’s $7 billion in assets, the FDIC said. The deal may cost the FDIC’s deposit insurance fund about $1.7 billion, the agency said.
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Brickwell Community Bank of Woodbury, Minnesota, was also seized today. CorTrust Bank of Mitchell, South Dakota, will pay a premium for the $63 million in deposits, the FDIC said. Brickwell’s sole branch will open tomorrow as an office of CorTrust. The FDIC and CorTrust entered into a loss-sharing agreement on $65 million of assets, the regulator said.
Lacy, Washington-based Venture Bank was shut down as well, the FDIC said. First-Citizens Bank & Trust Co. of Raleigh, North Carolina, assumed all $903 million in deposits and about $874 million of Venture’s assets, with the FDIC sharing losses on about $715 million. The 18 branches of Venture Bank will open tomorrow as offices of First-Citizens.
