Forty Year old bank closes in suburbs of Chicago

The five branches of First United Bank, Crete, Illinois, were closed with Wintrust Financial Corporation subsidiary Old Plank Trail Community Bank, National Association, New Lenox, Illinois, to assume all of the deposits. This is the seventh bank to fail in Illinois this year, 43rd total for US, with cost to the Deposit Insurance Fund (DIF) will be $48.6 million.

Founded May 6, 1972, the bank had 93 full time employees as of June 30, 2012 at its two offices at Frankfort, as well as Crete, Saint John, and Steger, considered the Southern suburbs of Chicago as it is 40 miles away. Year-end 2008, the bank had 127 full time employees at these offices.

The bank received its first Illinois Department of Financial and Professional Regulation consent order to stop engaging in unsafe and unsound banking practices in March, 2010. It was too late as by end of year they had their larges loss $12.6 million as well as the climbing non-current loan column.

(in millions)

Non-Current Loans
2006 $487,000
2007 $1.8
2008 $16.9
2009 $24.6
2010 $31.9
2011 $33.7
6/31 $34.3

They received another, this time from the FDIC that Michael Kazmierczak Chief Executive officer, President and Chief Financial officer they agreed to on November, 2010.
http://www.federalreserve.gov/newsevents/press/enforcement/enf20101109c1.pdf

Fey Orr, saw the need for a community bank in Crete as it did not have one and founded it in 1972, a wealthy land owner.

In December 1977, Conrail was set to abandon 25 miles (40 km) of their ex-New York Central Railroad trackage between Kankakee and Sheldon, Illinois, when instead it was purchased by Beaverville businessman Fey Orr to service his lumber and agricultural products industry based there. On July 16, 1997, company founder Fey Orr died at 85.
http://en.wikipedia.org/wiki/Kankakee,_Beaverville_and_Southern_Railroad

Crete is a village in Will County, Illinois, United States. The population was 7,346 at the 2000 census. The median income for a household in the village was $67,671, and the median income for a family was $73,987.
http://en.wikipedia.org/wiki/Crete,_Illinois

Real Estate in Crete (appears to be some expensive homes for the area)
http://www.century21.com/real-estate/Crete-IL/LCILCRETE/#
http://www.homes.com/Real_Estate/IL/City/CRETE/

Full Description of Crete:
http://www.city-data.com/city/Crete-Illinois.html

At the time of the banks demise the Tier 1 risk-based capital ratio was 3.72%

(in millions, unless otherwise)

Net Equity
2006 $40.8
2007 $43.2
2008 $36.7
2009 $29.7
2010 $18.6
2011 $10.9
6/31 $6.9

Profit
2006 $4.5
2007 $4.2
2008 -$5.0
2009 -$9.4
2010 -$12.6
2011 -$7.1
6/31 -$3.9

Charge Offs
2006 $40,000 ($27,000 individuals, $13,000 commercial/industrial loans)
2007 -$8,000 (-$8,000 commercial/industrial loans)
2008 $12.7 ($6.8 commercial/ind., $3.1 farmland, $2.1 construction/land, $300,000 1-4 family,
$6,000 individuals)
2009 $9.9 ($7.2 construction/land, $1.1 individuals, $343,000 farmland, $252,000 1-4 family, $803,000 other loans)
2010 $3.6 ($2.2 construction/land, $828,000 farmland, $255,000 1-4 family, $210, commercial)
2011 $9.3 ($5.7 construction/land, $1.9 farmland, $1.0 commercial/industrial, $465,000 nonfarm/nonres., $138,000 1-4 family)
6/31 $1.0 ($508,000 1-4 family, $262,000 nonfarm nonres, $192,000 commercial/ind., $45,000 construction/land)

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans.

As of June 30, 2012, First United Bank had approximately $328.4 million in total assets and $316.9 million in total deposits. Old Plank Trail Community Bank, N.A. will pay the FDIC a premium of 0.60 percent to assume all of the deposits of First United Bank. In addition to assuming all of the deposits, Old Plank Trail Community Bank, N.A. agreed to purchase essentially all of the failed bank’s assets.

The FDIC and Old Plank Trail Community Bank, N.A. entered into a loss-share transaction on $172.7 million of First United Bank’s assets.

List of Bank Failures:

http://www.fdic.gov/bank/individual/failed/banklist.html

Bank Beat:
http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm