May 14, 2010 at 6:10 p.m.
Filed under:
Bank failures,
Banking
By Becky Yerak | Midwest Bank, a $3.2 billion-asset lender that was among the first community banks to receive federal bailout funds, was seized by U.S. banking regulators Friday after failing to raise the capital it needed to stay independent.
Its assets, deposits and branches will be taken over by Akron, Ohio-based FirstMerit. The failure of Midwest Bank, which is part of publicly traded Midwest Banc Holdings of Melrose Park, is expected to cost the Federal Deposit Insurance Corp., which is financed by insurance premiums paid by banks, $216.4 million.
It’s the 11th Illinois bank failure in 2010; in 2009, the state saw 21 banks collapse. On Thursday the Tribune reported that FirstMerit was the frontrunner in the bidding.
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May 4, 2010 at 4:32 p.m.
Filed under:
Bank failures,
Banking,
Government
By Becky Yerak | The Federal Deposit Insurance Corp. began seeking potential bidders late last week for ShoreBank, in case the ailing South Side lender is unable to raise capital on its own, according to sources familiar with the FDIC process.
The FDIC also is seeking a healthy bidder for the assets and deposits of troubled Midwest Bank, a midsized lender based in Melrose Park. It is allowing potential bidders for that more desirable franchise to link bids to ShoreBank, which has lent heavily in more hard-hit areas, sources say.
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March 24, 2010 at 5:56 p.m.
Filed under:
By Becky Yerak
| Nearly 30 percent of the 630 banks and thrifts in Illinois lost money in
2009, but the percentage was nearly twice as high among banks in the
Chicago area, according to two recent studies.
A report from the Federal Deposit Insurance Corp. released Wednesday
showed that 29 percent of the state’s insured institutions were
unprofitable in 2009, up from 22 percent in 2008 and 11 percent in 2007.
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Feb. 19, 2010 at 11:09 a.m.
Filed under:
Bank failures
By Becky Yerak | A federal autopsy into the recent failures of Worth-based Founders Bank and Oregon, Ill.-based Rock River Bank found that bad investments in collateralized debt obligations, as well as deterioration in their commercial real estate portfolios, doomed the lender.
Both banks were among nine institutions owned by the Lyle Campbell
family. Founders, Rock River and four other Campbell banks were seized
by regulators on July 2.
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