Three More Bank Closings Brings 2009 Total To 92

The FDIC became receiver for three more US banks, which means a total of 92 have been closed this year.

The agency announced that Corus Bank of Chicago would close. Its eleven branches will become part of MB Financial Bank. As of June 30, 2009, Corus Bank had total assets of $7 billion and total deposits of approximately $7 billion. MB Financial Bank agreed to purchase approximately $3 billion of the assets, comprised mainly of cash and marketable securities. The FDIC will retain the remaining assets for later disposition.

Venture Bank of Lacy, Washington was also closed. The eighteen branches of Venture Bank will become part of  First-Citizens Bank & Trust Company. As of July 28, 2009, Venture Bank had total assets of $970 million and total deposits of approximately $903 million. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase approximately $874 million of the assets.

The third bank shut down was Brickwell Community Bank of Woodbury, Minnesota. The only branch of Brickwell Community Bank will reopen as a branch of CorTrust Bank. As of July, 24, 2009, Brickwell Community Bank had total assets of $72 million and total deposits of approximately $63 million. CorTrust Bank will pay the FDIC a premium of 0.10 percent to assume all of the deposits of Brickwell Community Bank. In addition to assuming all of the deposits of the failed bank, CorTrust Bank agreed to purchase essentially all of the assets.

Douglas A. McIntyre