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 included bad commercial real estate loans and delinquent business loans and home mortgages.
Per the FDIC website, the projected the loss to its insurance fund from the failure will be $49 million.
Michael Hobbs, SRA, LEED GA, PahRoo Appraisal & Consultancy