Regulators seize Maywood bank

By Dow Jones Newswires
Posted Oct. 22, 2010 at 7:30 p.m.

Regulators have shut down First Suburban National Bank of Maywood, Ill., late Friday and sold its $140 million in deposits to Seaway Bank and Trust Co. of Chicago.

Depositors of the First Suburban National Bank will be protected by the purchase deal with Seaway Bank and Trust. The four branches of First Suburban National Bank will reopen Saturday as branches of Seaway Bank and Trust. Seaway did not pay a premium.

First Suburban was among six banks in the Southeast and Midwest that were seized by U.S. regulators late Friday, raising the total number of bank failures to 138 this year, nearly as many as in 2009.

To protect depositors, the FDIC has arranged for other banks to assume all of the deposits of the six failed lenders. The total cost to the FDIC is estimated at $445.2 million.

The FDIC said the Kansas Office of the State Bank Commissioner had closed Hillcrest Bank N.A., which had about $1.65 billion assets as of June 30. A newly chartered bank subsidiary of NBH Holdings Corp. in Boston will assume all the deposits of the Overland Park, Kan., bank. The FDIC and Hillcrest Bank entered into a loss-sharing agreement on $1.15 billion of Hillcrest’s assets.

In Florida, the First Bank of Jacksonville and the Progress Bank of Florida in Tampa were shut, taking the state total to 27. Regulators also seized The Gordon Bank in Georgia and the First National Bank of Barnesville, marking 16 failures in that state. The two Southeast states have seen among the highest number of bank failures in 2010.

United Bank, Zebulon, Ga., will assume the deposits of the Barnesville bank. The two branches of The First National Bank of Barnesville will reopen Saturday as branches of United Bank and depositors will automatically be switched to United Bank.

All deposits will continue to be insured by the FDIC, which insures deposits in banks and thrift institutions for up to $250,000 per depositor.

Meanwhile, the Morris Bank in Dublin, Ga., agreed to take the deposits of The Gordon Bank. Bay Cities Bank in Tampa will assume those of Progress Bank in Florida. Ameris Bank in Georgia will get the deposits of First Bank of Jacksonville. The four branches of these three banks will reopen Monday.

For those banks with branches that are closed over the weekend, depositors will be able to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed.

The number of bank failures this year is all but certain to be larger than in 2009, when 140 banks were closed. Some 300 banks have been seized since the start of 2008, right after the financial crisis started.

Still, that’s well short of the more than 1,000 banks that went under in the savings-and-loan crisis of 1987-1992. Moreover, the FDIC now expects fewer losses from bank failures. The agency earlier this week predicted $52 billion in losses to the fund from 2010 through 2014, down from $60 billion predicted in June, mainly because losses from bank failures this year will be less than anticipated. As a result, federal regulators have decided to forgo a planned rate increase on banks paying into the FDIC’s insurance deposit fund.

Read more about the topics in this post: , , ,

Companies in this article


  1. glnhg kgh Oct. 22, 2010 at 10:01 pm

    Share a website with you ,
    input url in google sirch


    Believe you will love it.

  2. m Oct. 22, 2010 at 11:10 pm

    Decades old poorly run bank=failure!!!!!!

  3. Dan Oct. 23, 2010 at 11:02 a.m.

    SAY WHAAAAAT???? How can a bank in such a thriving, up-and-coming place like Maywood go belly up??????

  4. Rance St. Ambrose, IV Oct. 23, 2010 at 1:42 pm

    Dan wrote: SAY WHAAAAAT???? How can a bank in such a thriving, up-and-coming place like Maywood go belly up??????

    Too, too many grass hut hot ‘n tots on the board of directors.

  5. Guy Williams Oct. 23, 2010 at 3:38 pm

    Alright, where is Alexi Giannoulias? He must be around here somewhere.

  6. position Oct. 23, 2010 at 3:53 pm

    “Alright, where is Alexi Giannoulias? He must be around here somewhere.”

    Now THAT’S funny! I died laughing when I read that!