A Chicago area bank with nearly $3.2 billion in assets – which had received an infusion of $84.8 million in federal bailout funds – was one of four failed banks closed by regulators, bringing this year’s total to 72.
The 23-branch Midwest Bank and Trust Company, of Elmwood Park, Illinois, had $2.42 billion in total deposits. Firstmerit Bank, of Akron, Ohio, will assume all the Midwest Bank deposits – paying the Federal Deposit Insurance Corp. a premium of 0.4 percent – and has agreed to purchase essentially all of the assets.
Midwest was among the first community banks to get federal bailout funds.
Midwest is a subsidiary of Midwest Banc Holdings, Inc. which received an $84.8 million investment from the U.S. Treasury as part of the federal government’s primary bailout vehicle, the Troubled Asset Relief Program’s Capital Purchase Program.
Midwest sold $84.8 million in Senior Preferred shares – and warrants to purchase common stock to the U.S. Treasury – in December 2008.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $216.4 million from the Midwest Bank failure.
The three other failed banks totaled nearly $342 million in assets. Satilla Community Bank in Saint Marys, Georgia ($135.7 million); New Liberty Bank in Plymouth, Michigan ($109.1; and Southwest Community Bank in Springfield, Missouri
The FDIC also found buyers for the other three banks. But the four bank closures are estimated to cost the FDIC about $300 million.
Here’s a recap from the FDIC:
Midwest Bank and Trust Company, Elmwood, IL with $3.17 billion in assets and $2.42 billion in deposits was closed. FirstMerit Bank, National Association, Akron, OH has agreed to assume all deposits.
Southwest Community Bank, Springfield, MO with $96.6 million in assets and $102.5 million in deposits was closed. Simmons First National Bank, Pine Bluff, AR has agreed to assume all deposits.
New Liberty Bank, Plymouth, MI with $109.1 million in assets and $101.8 million in deposits was closed. Bank of Ann Arbor, Ann Arbor, MI has agreed to assume all deposits, excluding certain brokered deposits.
Satilla Community Bank, Saint Marys, GA with $135.7 million in assets and $134.0 million in deposits was closed. Ameris Bank, Moulteri, GA has agreed to assume all deposits, excluding certain brokered deposits.
