6 Campbell Family Banks Closed in Illinois

The Illinois Department of Financial and Professional Regulation closed 6 banks in Illinois yesterday all controlled by the Campbell family. All 6 failed not due to bad lending practices directly, but concentrated investments in CDOs.

The largest was Founders Bank in Worth. Founders Bank with 11 offices in Chicago's southwest suburbs had deposits of $848.9 million. The offices and accounts have been transferred to The Private Bank and Trust Company of Chicago. The estimated cost to the insurance fund is $188.5 million or 22 cents on the dollar.

Rock River Bank with four branches had deposits of $75.8 million. The offices and accounts will be taken over by Harvard State Bank with an estimated cost to the insurance fund of $27.6 million or 36 cents per dollar on deposit.

Elizabeth State Bank with just 2 offices will be taken over by Galena State Bank and Trust. Elizabeth State Bank had deposits of $55.5 million and the closing will cost the FDIC $11.2 million or 20 cents per dollar.

First State Bank of Winchester, also with 2 offices, has been taken over by The First National Bank of Beardstown. First State Bank of Winchester had deposits of $34 million and the closing will cost the FDIC insurance fund $6 million or 18 cents per dollar.

The John Warner Bank, with 3 offices in central Illinois has been taken over by the State Bank of Lincoln. John Warner Bank had deposits of $64 million and will cost the insurance fund $10 million or 17 cents per dollar on deposit.

First National Bank of Danville, with 7 offices will be taken over by First Financial Bank of Terre Haute, Indiana. First National had deposits of $147 million and will cost the insurance fund $24 million or 16 cents per dollar.

The Campbell family also controls 2 other community banks in Illinois and Legacy Bank in Scottsdale, Arizona.

Also on Thursday, Millennium State Bank of Texas in Dallas was shut down. The one office with $115 million in deposits will be reopened on Monday as the State Bank of Texas. The cost to the FDIC is estimated at $47 million or 41 cents per dollar on deposit.

The seven banks closed this week bring the total number for calendar year 2009 to 52.

Westsound Bank Closes, Corus Teetering

On May 8th, Westsound Bank of Bremerton, WA was closed by the Washington Department of Financial Institutions. The nine branches were reopened on May 11th as new branches of Kitsap Bank of Port Orchard, WA. Customer deposits were approximately $304.5 million including $9.4 million in brokered deposits. The cost to the FDIC is estimated at $108 million, or 35 cents on the dollar.

Westsound Bank, the 33rd bank to close this year, was number 4 on my list of Banks Most Likely to Close in 2009. The top 8 on the list have now all shut their doors. This list, which has less than 1% of all FDIC insured banks has captured 45% of the closings this year.

One bank I am adding to the list now is Corus Bank of Chicago, IL. The bank reported a first quarter loss of $285 million. That's $5.31 per share and the stock currently trades at 58 cents. In early April the company's auditor expressed doubts in the banks ability to continue as a "going concern" and in late April the CEO resigned. Their loan portfolio has blown up. More than half of their loans are non-performing. Foreclosed properties were up to $499 million by the end of March. The bank is under special oversight and has until June 18th to raise more capital.

Here's my current list of the 50 63 Banks Most Likely to Close in 2009.

1 Magnet Bank, Salt Lake City, UT
2 Citizens Community Bank, Ridgewood, NJ
3 FirstBank Financial Services, McDonough, GA
4 Westsound Bank, Bremerton, WA
5 Suburban Federal Savings Bank, Crofton, MD
6 America West Bank, Layton, UT
7 Silver Falls Bank, Silverton, OR
8 Ocala National Bank, Ocala, FL
9 Sun Security Bank, Ellington, MO
10 Eastern Savings Bank, FSB, Hunt Valley, MD
11 Alliance Bank, Culver City, CA
12 FirstCity Bank, Stockbridge, GA
13 Chestatee State Bank, Dawsonville, GA
14 First Security National Bank, Norcross, GA
15 Ocean Bank, Miami, FL
16 Family Bank and Trust Co., Palos Hills, IL
17 Southern Community Bank, Fayetteville, GA
18 BankCherokee, Saint Paul, MN
19 First Tuskegee Bank, Tuskegee, AL
20 Federal Trust Bank, Sanford, FL
21 Pinnacle Bank, Beaverton, OR
22 Lake Country Community Bank, Morristown, MN
23 Mesa Bank, Mesa, AZ
24 Bank of Wyoming, Thermopolis, WY
25 1st American State Bank of Minnesota, Hancock, MN
26 First State Bank of Altus, Altus, OK
27 EvaBank, Eva, AL
28 Strategic Capital Bank, Champaign, IL
29 Ebank, Atlanta, GA
30 Polk County Bank, Johnston, IA
31 Parkway Bank, Rogers, AR
32 Security Bank of Gwinnett County, Suwanee, GA
33 State Bank of Park Rapids, Park Rapids, MN
34 Herrin Security Bank, Herrin, IL
35 Omni National Bank, Atlanta, GA
36 Northpointe Bank, Grand Rapids, MI
37 Towne Bank of Arizona, Mesa, AZ
38 Timberland Bank, El Dorado, AR
39 Blue Ridge Savings Bank, Inc., Asheville, NC
40 First Piedmont Bank, Winder, GA
41 Select Bank, Grand Rapids, MI
42 Oxford Bank, Oxford, MI
43 Security Bank of North Metro, Woodstock, GA
44 MetroPacific Bank, Irvine, CA
45 Earthstar Bank, Southampton, PA
46 Neighborhood Community Bank, Newnan, GA
47 The Home Savings and Loan Company, Youngstown, OH
48 Heritage Community Bank, Glenwood, IL
49 Vineyard Bank, NA, Rancho Cucamonga, CA
50 Community Bank of Lemont, Lemont, IL
51 Mainstreet Bank, Forest Lake, MN
52 Mutual Bank, Harvey, IL
53 Freedom Bank of Georgia, Commerce, GA
54 Newton County Loan & Savings FSB, Goodland, IN
55 Riverside Bank, Cape Coral, FL
56 BankUnited, Coral Gables, FL
57 American Sterling Bank, Sugar Creek, MO
58 The Park Avenue Bank, New York, NY
59 First Commerce Community Bank, Douglasville, GA
60 Centennial Bank, Ogden, UT
61 Warren Bank, Warren, MI
62 Peoples First Community Bank, Panama City, FL
63 Corus Bank, Chicago, IL