Home / News / Government / FDIC Marks 2014’s First Bank Failure
Print This Post Print This Post

FDIC Marks 2014’s First Bank Failure

West Chicago's DuPage National Bank has the dubious honor of being the first FDIC-insured institution to close in 2014.

The agency announced Friday the bank's closure by the Office of the Comptroller of the Currency (OCC).

To protect depositors, FDIC announced a purchase and assumption agreement with Republic Bank of Chicago, which has agreed to pay a premium of 1.20 percent to assume all of DuPage National's deposits (estimated at $59.6 million as of Q3 2013) and "essentially all" of its assets.

FDIC estimates the failed bank's acquisition will cost its Deposit Insurance Fund about $1.6 million.

The steady downward trend of bank failures in recent years suggests that, barring any major financial shocks to the country, 2014 will see a short list of collapses. In 2011, FDIC reported 92 bank failures; that number nearly halved to 51 in 2012, which in turn dropped to 24 last year.

x

Check Also

Federal Financial Agencies Announce Flexibility in Mortgage Servicing Rules

Here are the key takeaways regarding the enforcement of certain mortgage servicing rules governing borrower communications in response to the COVID-19 emergency.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.