New City Bank in Chicago was closed by regulators this Friday. This was the only bank failure of the day, and it raises the total number of 2012 failures to 13. Last year at this time there had been 25 bank failures.
This was another 2012 bank closure in which the FDIC wasn't able to find a buyer. It was only two weeks ago when Home Savings of America failed without a buyer. Unfortunately, these types of closures are becoming more common. For all of last year only two banks failed without buyers.
When the FDIC can't find a buyer, those with deposits over the FDIC limit may lose their uninsured deposits. According to the FDIC:
The amount of uninsured deposits will be determined once the FDIC obtains additional information from those customers.
For insured deposits, the FDIC will be mailing checks to the depositors. Those checks should include both the principal and accrued interest up to the day of closure.
Below is the summary of the bank failure.13th Bank Failure of 2012 (2nd in Illinois)
- Closed Bank: New City Bank, Chicago, IL
- FDIC Press Release
- Size: 1 branch, $71.2 million in assets and $72.4 million in deposits
- Acquiring Bank: None
- Possible Uninsured Deposits: The amount of uninsured deposits will be determined once the FDIC obtains additional information from those customers
- Rate Changes: The FDIC will mail checks directly to depositors of New City Bank for the amount of their insured money
- Estimated Cost to Deposit Insurance Fund: $17.4 million
- Enforcement Action: FDIC 5/16/11 Consent Order
- Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 390.48% at DepositAccounts.com (see financial rating note)
Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at Bankrate.com & DepositAccounts.com, Texas Ratios over 100% is considered at risk. Ratings at DepositAccounts.com and BauerFinancial are based on December 2011 data. Bankrate's ratings are based on September 2011 data.