3 Banks, 1 CU Closed

66 Failed Institutions So Far in 2011
3 Banks, 1 CU Closed
Three banks and one credit union were closed by state and federal banking regulators on Friday, July 8. These failures raise the year's tally to 66 failed institutions.

The latest failures:

First Chicago Bank & Trust, Chicago, Ill.

First Chicago Bank & Trust, Chicago, Illinois, was closed by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northbrook Bank & Trust Company, Northbrook, Illinois, to assume all of the deposits of First Chicago Bank & Trust.

As of March 31, 2011, First Chicago Bank & Trust had approximately $959.3 million in total assets and $887.5 million in total deposits. Northbrook Bank & Trust Company will pay the FDIC a premium of 0.50 percent to assume all of the deposits of First Chicago Bank & Trust. In addition to assuming all of the deposits of the failed bank, Northbrook Bank & Trust Company agreed to purchase approximately $880.7 million of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $284.3 million.

Colorado Capital Bank, Castle Rock, Colo.

Colorado Capital Bank, Castle Rock, Colo., was closed by the Colorado Division of Banking, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, N.C., to assume all of the deposits of Colorado Capital Bank.

As of March 31, 2011, Colorado Capital Bank had approximately $717.5 million in total assets and $672.8 million in total deposits.

The FDIC estimates that the cost to the DIF will be $283.8 million.

Signature Bank, Windsor, Colo.

Signature Bank, Windsor, Colo., was closed by the Colorado Division of Banking, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Points West Community Bank, Julesburg, Colorado, to assume all of the deposits of Signature Bank.

As of March 31, 2011, Signature Bank had approximately $66.7 million in total assets and $64.5 million in total deposits.

The FDIC estimates that the cost to the DIF will be $22.3 million.

Borinquen FCU, Philadelphia, Penn.

The National Credit Union Administration liquidated Borinquen Federal Credit Union of Philadelphia. NCUA made the decision to liquidate Borinquen Federal Credit Union and discontinue its operations after determining the credit union was insolvent and had no prospect for restoring viable operations.

Borinquen Federal Credit Union served 8,600 members and had deposits of approximately $6 million. Member deposits are federally insured by the National Credit Union Share Insurance Fund up to $250,000. NCUA's Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the credit union within one week.


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