Busy day for Illinois regulators

Bank closings used to surprise the public, but increasingly attentive consumers are getting a heads-up from media before regulators storm in to shutter an institution. All seven Illinois banks which were closed by regulators on April 23 were named in a list of undercapitalized banks reported by the web site Chicago Breaking Business on March 8..Crain's Chicago Business reported on April 22 that the FDIC had stopped accepting bids on seven Illinois banks on April 19. It reported that Harris N.A., had bid on Amcore Bank of Rockford, Ill. It also reported that U.S. Bank examined Amcore's financial information. Amcore, with $3.8 billion in assets and 52 branches across northern Illinois and southern Wisconsin, was one of the seven banks closed. Harris, the Chicago-based subsidiary of Canada's Bank of Montreal, picked up Amcore's assets and deposits through the FDIC..In addition to Amcore, the following banks failed April 23:.• Wheatland Bank, Naperville, with $437.2 million in assets – Wheaton Bank & Trust paid a 0.4 percent premium to pick up the bank's $438.5 million in deposits and most of its assets. It got a loss-share agreement with the FDIC on $300.2 million of the assets..• Peotone Bank and Trust Company, with $130.2 million in assets – First Midwest Bank, Itasca, paid a 1.0 percent premium to purchase $127 million in deposits and most of its assets. An FDIC loss-share agreement applies to $57.5 million of the assets..• Lincoln Park Savings Bank, Chicago, with $199.9 million in assets – Northbrook Bank and Trust Company, paid a 0.4 percent premium to acquire $171.5 million in deposits and most of the bank's assets. A loss-share agreement covers $141.5 million of the assets..• Citizens Bank & Trust, Chicago, with $77.3 million in assets – Republic Bank of Chicago, Oak Brook, paid a premium of 0.00013 to acquire the bank's $74.5 million in deposits. The FDIC is retaining most of the bank's assets for later disposition..• New Century Bank, Chicago, with $485.6 million in assets – MB Financial Bank, N.A., Chicago, assumed the bank's $492 million in deposits without paying any premium to the FDIC. It also agreed to purchase most of the bank's assets, with $429.1 million of them covered by a loss-share agreement..• Broadway Bank, Chicago, with assets of $1.2 billion – MB Financial Bank also picked up this bank's $1.1 billion in deposits without paying a premium. It is buying the bank's assets, with a loss-share agreement applying to $878.4 million..The FDIC said resolution of all seven banks will cost the Deposit Insurance Fund about $973.9 million..Broadway Bank, founded in 1979, is interesting to political observers because U.S. Senate candidate Alexi Giannoulias is the son of the bank's founder. Giannoulias worked at the bank up until 2005, before winning election as Illinois state treasurer..Amcore Bank, founded in 1931, grew rapidly since it announced a "branch expansion program" in April of 2001. That year, the bank had $879 million in assets, 345 employees and nine branches. At year-end 2009, the bank reported having 938 full-time equivalent employees and 70 branches. The bank's $213 million loss in 2009 was emblematic of Amcore's recent struggles with the real estate lending market..Amcore took steps to raise capital, including the sale of 12 branches to Midland States Bank of Effingham, Ill., in the first quarter..Amcore's failure, however, created opportunity for Harris, which announced five years ago that it wanted to double the number of its branches in the United States by 2010. Since 2005, it has grown its branch network to 280 from 200; the addition of the Amcore branches will increase the total number of Harris branches to 332..Although closing seven banks in one day is notable, it is not a record for Illinois. On March 16, 1989, regulators closed 10 banks in the state.