Two financial institutions, one in Illinois and the other in Texas, were taken over by regulators last week. While one of the failed entities had little in the way of assets, the bigger casualty involved an institution with more than $300 million in assets.
One of last week’s casualties was First United Bank, which was closed Friday by the Illinois Department of Financial and Professional Regulation – Division of Banking.
First United was originally established on May 6, 1972. Around 93 people were employed by the bank when it was closed.
Total assets at the Crete, Ill., institution were $328 million as of June 30 and included $46 million in home loans, $44 million in commercial real estate loans and $29 million in construction-an-land-development loans. Total deposits were $317 million.
The parent of First United, Crete Bancorporation Inc., entered a written agreement with the Federal Reserve Bank of Chicago in November 2010.
The state appointed the Federal Deposit Insurance Corp. as receiver. Following a secret bidding process, Old Plank Trail Community Bank, N.A., assumed all of the deposits for an 0.60 percent premium. Old Plank also acquired all of the assets with the FDIC agreeing to stay on the hook for a share of the losses on $173 million in assets.
Losses from First United’s failure are expected to be $49 million.
It was the 43rd FDIC-insured bank failure during 2012.
El Paso’s Federal Credit Union was liquidated by the National Credit Union Administration on Friday. Originally chartered in 1952, the El Paso, Texas-based credit union served 1,035 members and catered to employees of American Smelting and Refining Co., select employee groups and other affinity groups.
The demise of the $5 million credit union was the 10th credit union failure in 2012.
Including credit unions and non-bank lenders, 69 mortgage-related businesses have closed or failed so far this year.
