Feds order Amcore Bank, six other Illinois banks closed

Harris Bank acquires Amcore; Wintrust Financial acquires two other shuttered banks

The U.S. Office of the Comptroller of the Currency ordered Rockford, Ill.-based Amcore Bank closed on Friday night. Amcore Bank had at least 12 branches in Wisconsin.

The bank’s branches reopened Saturday as branches of Chicago’s Harris Bank.

“The FDIC’s effort to help bring greater stability to the industry is something we are pleased to support,” said Bill Downe, president and CEO of BMO Financial Group, the corporate parent of Harris Bank. “This is a perfect strategic fit that accelerates our growth strategy and reinforces our already strong position in the U.S. Midwest. The addition of this franchise – quality locations and a valuable customer base – supports our current market share and expands Harris’ branch network into communities in northern Illinois and southern Wisconsin, including Madison and Rockford, where we already have a strong and growing commercial banking presence.” 

Harris’ acquisition of Amcore Bank included the assumption of approximately $2.1 billion in deposits, about $2.5 billion in assets (including roughly $2 billion in loans), and about $2.4 billion in trust, investment and brokerage assets. All loans are covered by an 80/20 loss share agreement with the FDIC covering 80 percent of potential loan losses.

Northbrook Bank & Trust Company and Wheaton Bank & Trust Company, which are owned by Wintrust Financial Corp., the Lake Forest, Ill.-based parent company of Town Bank in Wisconsin, acquired two of the other Illinois banks that were closed Friday.

Northbrook Bank acquired assets and liabilities and the banking operations of Lincoln Park Savings Bank, and Wheaton Bank acquired the assets and liabilities and banking operations of Wheatland Bank.

Lincoln Park Savings Bank operates four locations in Chicago and had approximately $205 million in total assets and $171 million in total deposits as of Dec. 31, 2009.

Wheatland Bank has one location in Naperville and had approximately $435 million in total assets and $438 million in total deposits.

Both banks reopened under new management on Saturday.

"These two transactions represent a great opportunity for us to expand our presence while maintaining our focus on community banking," said Edward Wehmer, president and chief executive officer of Wintrust. "We look forward to serving our new customers with our commitment to personalized service."

In addition to Amcore, Lincoln Park Savings Bank, and Wheatland Bank, the other banks that were closed tonight were Peotone Bank and Trust Company, New Century Bank, Citizens Bank & Trust Company of Chicago and Broadway Bank.

The seven bank failures combined will cost the federal deposit insurance fund $973.9 million, according to the FDIC.

The total number of bank failures in the U.S. for the year is now 57.


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