FOR IMMEDIATE RELEASE
March 23, 2012
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

Covenant Bank & Trust, Rock Spring, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of Covenant Bank & Trust.

The two branches of Covenant Bank & Trust will reopen on Monday as branches of Stearns Bank, National Association. Depositors of Covenant Bank & Trust will automatically become depositors of Stearns Bank, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Covenant Bank & Trust should continue to use their existing branch until they receive notice from Stearns Bank, National Association that it has completed systems changes to allow other Stearns Bank, National Association branches to process their accounts as well.

This evening and over the weekend, depositors of Covenant Bank & Trust can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, Covenant Bank & Trust had approximately $95.7 million in total assets and $90.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, Stearns Bank, National Association agreed to purchase essentially all of the assets.

The FDIC and Stearns Bank, National Association entered into a loss-share transaction on $71.6 million of Covenant Bank & Trust’s assets. Stearns Bank, National Association will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-537-4048. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/covenant.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31.5 million. Compared to other alternatives, Stearns Bank, National Association’s acquisition was the least costly resolution for the FDIC’s DIF. Covenant Bank & Trust is the fourteenth FDIC-insured institution to fail in the nation this year, and the fourth in Georgia. The last FDIC-insured institution closed in the state was Global Commerce Bank, Doraville, on March 2, 2012.

*Note: WTF happened here? Stearns bank is several hundred miles from me, but even I know they would have to be approached for a special deal to absorb what will likely be nothing but trouble for a bank far outside its marketshare.

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Press Release

International Bank of Chicago, Chicago, Illinois, Assumes All of the Deposits of Premier Bank, Wilmette, Illinois

FOR IMMEDIATE RELEASE
March 23, 2012
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

Premier Bank, Wilmette, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with International Bank of Chicago, Chicago, Illinois, to assume all of the deposits of Premier Bank.

The two branches of Premier Bank will reopen during their normal business hours beginning Saturday as branches of International Bank of Chicago. Depositors of Premier Bank will automatically become depositors of International Bank of Chicago. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Premier Bank should continue to use their existing branch until they receive notice from International Bank of Chicago that it has completed systems changes to allow other International Bank of Chicago branches to process their accounts as well.

This evening and over the weekend, depositors of Premier Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, Premier Bank had approximately $268.7 million in total assets and $199.0 million in total deposits. In addition to assuming all of the deposits of the failed bank, International Bank of Chicago agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-591-2767. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/premier-il.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $64.1 million. Compared to other alternatives, International Bank of Chicago’s acquisition was the least costly resolution for the FDIC’s DIF. Premier Bank is the fifteenth FDIC-insured institution to fail in the nation this year, and the third in Illinois. The last FDIC-insured institution closed in the state was New City Bank, Chicago, on March 9, 2012.

*These were failures 14 and 15 this year.

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