Regulators shut banks in Illinois and Colorado

Regulators in the US shut down a bank in Illinois and two in Colorado on Friday, increasing to 51 the number of US bank failures this year. The latest closings come even as the overall pace of bank failures has slowed as the economy gradually improves and banks work their way through the bad debt accumulated during the financial crisis. Through July 9 last year, regulators had closed 90 banks. The Federal Deposit Insurance Corp. (FDIC) on Friday seized First Chicago Bank and Trust in Chicago and Colorado Capital Bank in Castle Rock, Colorado, and Signature Bank, in Windsor, Colorado. Northbrook Bank and Trust, based in Northbrook, Illinois, agreed to assume the deposits and a majority of the assets of First Chicago, which had about $959.3 million (Dh3.52 billion) in assets and $887.5 million in deposits. Northbrook paid the FDIC a premium of 0.50 per cent for the failed bank's deposits and agreed to buy about $880.7 million of First Chicago's assets. In addition, the FDIC and Northbrook Bank agreed to share losses on $699.8 million of First Chicago's assets. First Citizens Bank and Trust Co., based in Raleigh, North Carolina, assumed all the deposits and essentially all the assets of Colorado Capital, which had about $717.5 million in assets and $672.8 million in deposits. The FDIC and First Citizens also agreed to share losses on $580 million of Colorado Capital's assets. Points West Community Bank, based in Julesburg, Colorado, agreed to assume Signature Bank's $64.5 million in deposits and essentially all of its $66.7 million in assets. The two bank failures are expected to cost the deposit insurance fund $590.4 million, combined. From / Gulf News