First Chicago Bank, Two Colorado Banks Fail

After taking off a week due to the fourth of July holiday weekend, regulators came back to work this week, closing two banks in Colorado and one in Illinois.

The largest banking failure of the week was the failure of First Chicago Bank & Trust with almost $1 billion in assets.  It was the fifth banking failure in Illinois this year.

Regulators also closed two banks in Colorado – Signature Bank and Colorado Capital Bank.

So far this year 51 banks have failed

Northbrook Bank 

Northbrook Bank & Trust Company, Northbrook, Illinois, was named to assume all of the deposits of First Chicago.

The seven branches of First Chicago Bank & Trust will reopen during normal business hours as branches of Northbrook Bank & Trust Company. Depositors of First Chicago Bank & Trust will automatically become depositors of Northbrook Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.

Customers of First Chicago Bank & Trust should continue to use their existing branch until they receive notice from Northbrook Bank & Trust Company that it has completed systems changes to allow other Northbrook Bank & Trust Company branches to process their accounts as well.

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 (DIF) will be $284.3 million.

Customers with questions should call the FDIC toll-free at 1-800-517-1839. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/firstchicago.html.

Colorado Capital

Colorado Capital Bank, Castle Rock, Colorado, was closed Friday and its deposits will be assumed by First-Citizens Bank & Trust Company, Raleigh, North Carolina.

The seven branches of Colorado Capital Bank will reopen on Monday as branches of First-Citizens Bank & Trust Company. Depositors of Colorado Capital Bank will automatically become depositors of First-Citizens Bank & Trust Company. Deposits will continue to be insured by the FDIC.

As of March 31, 2011, Colorado Capital Bank had approximately $717.5 million in total assets and $672.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase essentially all of the assets.

The FDIC and First-Citizens Bank & Trust Company entered into a loss-share transaction on $580.0 million of Colorado Capital Bank's assets. First-Citizens Bank & Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $283.8 million.

Customers with questions should call the FDIC toll-free at 1-800-508-8289 or visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/coloradocapital.html.

Signature Bank

Signature Bank, Windsor, Colorado, was also closed by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corporation (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.

The three branches of Signature Bank will reopen during normal business hours as branches of Points West Community Bank. Depositors of Signature Bank will automatically become depositors of Points West Community Bank.

As of March 31, 2011, Signature Bank had approximately $66.7 million in total assets and $64.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, Points West Community Bank agreed to purchase essentially all of the assets.

Customers with questions about today's transaction should call the FDIC toll-free at 1-800-517-1843 or visit http://www.fdic.gov/bank/individual/failed/signaturebank.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.3 million. Compared to other alternatives, Points West Community Bank's acquisition was the least costly resolution for the FDIC's DIF. Signature Bank is the 51st FDIC-insured institution to fail in the nation this year, and the 4th in Colorado.