Three banks were shuttered by U.S. regulators on Friday, bringing the total number of failed banks so far this year, to 92.
The largest, Corus Bank (CORS), had strayed from its community banking specialty, to expand into commercial real estate loans, focusing on loans to developers who were putting up high-rise condos in high-risk areas such as Florida.
The eleven-branch bank is based in Chicago and had total assets of $7 billion and deposits of $7 billion as well.
The FDIC has entered in a purchase and assumption agreement with MB financial Bank of Chicago, IL, which will assume all the deposits of Corus Bank for a 0.2% premium. Under the agreement, MB Financial is also purchasing $3 billion of Corus Bank's assets and the rest is being held by the FDIC for later disposition.
The FDIC is estimating that the failure of Corus will cost the FDIC's Deposit Insurance Fund $1.7 billion million.
Brickwell Community Bank, which is based in Woodbury, MN, was shut down by the Minnesota Department of Commerce and the FDIC was appointed receiver. The bank had assets of $72 million and about $63 million in deposits.
CorTrust Bank of Mitchell, SD has entered into a purchase and assumption agreement with the FDIC and it will assume all the deposits of Brickwell for a 0.10% premium and purchase "essentially all of the assets."
The FDIC is estimating that the failure of Brickwell will cost the FDIC's Deposit Insurance Fund $22 million.
Venture Bank of Lacy, Washington, was shut down by the Washington Department of Financial Institutions, which appointed the FDIC receiver. The bank had eighteen branches, $970 million in assets and total deposits of roughly $903 million.
The FDIC has entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company of Raleigh, NC, which will assume all the deposits of the Venture Bank. First-Citizens will be purchasing about $874 million of the assets, in a loss-share transaction with the FDIC.
The FDIC is estimating that the failure of Venture will cost the FDIC's Deposit Insurance Fund $298 million.
The branches of the failed bank will all open on Monday, as branches of the banks acquiring their deposits and customers will be able to go about their business as usual, with the name changes being the only difference.
