fdic: Another One Bites The Dust In Illinois: 7th Bank Failure Of 2012 - 09/29/12 12:26 AM
 
Calculated Risk reported Friday that First United Bank in Illinois is the 43rd FDIC-insured institution to fail in 2012 and it is the seventh to fail in Illinois in 2012.
First United Bank is the 39th Chicago-area bank to fail since the onset of the financial crisis.
The failed bank was purchased by Wintrust Financial Corp. and will open Saturday as branches of Wintrust's Old Plank Trail Community Bank, which is located in south suburban New Lenox.
In an article by Crain’s, it was noted that the bank succumbed to a pile of bad loans across virtually all categories, which … (2 comments)

fdic: High-Risk Mortgage Proposal Affect Appraisals - 08/20/12 01:12 PM
 
Last Week, Six federal financial regulatory agencies issued a proposed rule to establish new appraisal requirements for “higher-risk mortgage loans.” The proposed rule would implement changes to the Truth in Lending Act enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The rules would apply to higher-risk mortgage loans, which under the Dodd Frank Act are those on people’s homes whose interest rates are above a variable threshold. The bar is set based on how much a loan’s interest rate exceeds the Average Prime Offer Rate, a survey-based estimate of typical mortgage rates.
 
For higher-risk … (1 comments)

fdic: Bank Failures Slowing Down - 07/23/12 10:01 AM
Based on recent data from the FDIC, as well as anecdotal evidence from bankers in Chicago and northern Illinois who have been subjected to the OCC and FDIC bank audits, it does seem that although the United States banking system is not out of the woods yet, the banking system continues to heal.

Based on the above chart from the FDIC, the general trend is downward, albeit slowly.
So, in about 3 years, provided the commercial delinquencies don't cause brand-new spiking lines on the graph, these red lines of failure should be all but about gone.
That is provided of … (0 comments)

fdic: Another One Bites The Dust, Make That 37 Of Them - 07/22/12 01:51 PM
The FDIC, Federal Deposit Insurance Corp., announced that another Illinois lender has bit the dust, ka-plooey, failed, bye-bye, Adios Amigos, sayonara.  Second Federal Savings & Loan of Chicago failed and was scooped up by a division of Wintrust.
To date, that is the 37th bank which has failed in Illinois since 2009.
So, if you're keeping count, yes Illinois is once again near the top of the charts in an unenviable category.
 
Michael Hobbs, PahRoo Appraisal & Consultancy
Twitter @PahRoo
We're Hiring:  Chicago & Suburbs Certified Residential Real Estate Appraiser, salaried position for qualifed professional, $50,000 to $85,000
… (0 comments)

fdic: FDIC Forecasts Fewer Bank Failures In 2012 - 04/25/12 09:39 AM

Some additional positive news from the FDIC.  The Federal Deposit Insurance Corporation forecasts fewer bank failures in 2012. 

For many onlookers and prognosticators, this is a positive sign that that the economy will continue its recovery that began several quarters ago.  Granted, the recovery is not setting the world on fire, but it is just like the little train that could...I think I can, I think I can....

On April 17, Acting FDIC Chairman Martin J. Gruenberg said that only 16 banks have collapsed so far in 2012 and that he expects the total number of failures … (1 comments)

fdic: Illinois Banks Still At Risk; Nearly 50 Bank Failures To Date - 02/28/12 10:33 AM
Just when you thought it was safe to go outside....Data provided by HighlineFI indicated that there were 19 undercapitalized Illinois banks and thrifts as of Dec. 30, 2011.  This total did not include Charter National Bank and Trust of Hoffman Estates which just failed earlier in this month. 
In spite of this, there is some good news.  Only one bank has failed in Illinois this year.  That compares to 9 bank failures (closures) in 2011, 16 in 2010, and 21 in 2009.
Also of note, the Federal Deposit Insurance Corp. is scheduled to close its satellite office in Schaumburg, IL in … (0 comments)

fdic: Did You Hear That Sound? It Is The Sound Of The FDIC Leaving Chicago! - 09/16/11 04:37 PM

It is true.  Chicago is saying Bye Bye to the FDIC.Just saw the release from the FDIC that they are shutting down in Chicago.  No, they are not shutting down, shutting down, they are closing one of their 3 satelite centers which was opened to address the above average concentration of bank problems in the Midwest. 
FDIC's Division of Resolutions and Receiverships Director Bret Edwards said, "With the banking industry healing and projected failures declining, it is important that we efficiently draw down to respond to our declining workload. I want to thank all of the staff in the Schaumburg … (3 comments)

fdic: Another One Bites The Dust...Geneva's First Choice Bank (Illinois Bank Failure) - 08/21/11 11:10 AM

 
 
How many more times is that 70s song going to get played?  A lot more based on the FDIC's bank watch list...see http://fdic.gov/bank/individual/failed/firstchoice-il.html
On Friday, First Choice Bank of Geneva, Illinois failed.  It was the 7th bank to fail this year and the 33rd to fail since 2009.  The FDIC estimates its insurance fund will absorb a $31-million loss from First Choice’s failure.
The acquiring bank, InLand Bank & Trust will assume $141 million in assets and $137 million in deposits.
Better dust off your vinyl, because what was old is new again.
Michael Hobbs, President, PahRoo Appraisal … (4 comments)

fdic: Five Myths About Bank-Owned Properties - 08/12/11 03:25 AM

For the typical buyer or investor, there are a lot of decisions that must be made.  Such as, what area or subdivision do we want to live or invest in?  What size house do we want to buy or invest in?  What level of finishes do we want for the house we are seeking?  Do we want to buy a house that is move-in ready or buy one that needs work but might be a bargain?
In the course of asking these questions a buyer and an investor will definitely come across the term 'bank-owned'.  For the uninitiated, this is … (7 comments)

fdic: Another One Bites The Dust...Bank of Shorewood; Illinois Bank Failure - 08/08/11 05:24 AM

On Friday, the Federal Deposit Insurance Corporation (FDIC) announced that Bank of Shorewood, located in Illinois, failed on Friday. The FDIC estimates that the loss will be nearly $26mm. The failure was the 6th in Chicago in 2011 and the 32nd to fail since 2009. 
For those in and around Chicago, another bank failure equates to more distressed real estate assets.  Whether via foreclosure or deed-in-lieu of foreclosure or other mediation with the lender, only time will tell what the extent of the impact will be.
Pull out those vinyl LPs...Another One Bites The Dust
Michael Hobbs, PahRoo Appraisal … (1 comments)