FDIC Friday ~ Feb 15, 2013
Posted: Mon Feb 18, 2013 8:55 amLiberty Bank and Trust Company, New Orleans, Louisiana, Assumes All of the Deposits of Covenant Bank, Chicago, Illinois
As of December 31, 2012, Covenant Bank had approximately $58.4 million in total assets and $54.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Liberty Bank and Trust Company agreed to purchase essentially all of the assets
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $21.8 million. Compared to other alternatives, Liberty Bank and Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Covenant Bank is the 3rd FDIC-insured institution to fail in the nation this year, and the first in Illinois. The last FDIC-insured institution closed in the state was Citizens First National Bank, Princeton, on November 2, 2012.
As of December 31, 2012, Covenant Bank had approximately $58.4 million in total assets and $54.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Liberty Bank and Trust Company agreed to purchase essentially all of the assets
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $21.8 million. Compared to other alternatives, Liberty Bank and Trust Company's acquisition was the least costly resolution for the FDIC's DIF. Covenant Bank is the 3rd FDIC-insured institution to fail in the nation this year, and the first in Illinois. The last FDIC-insured institution closed in the state was Citizens First National Bank, Princeton, on November 2, 2012.