One Bank Fails on Aug. 6

123 Bank, Credit Union Failures So Far in 2010
One Bank Fails on Aug. 6
Federal and state banking regulators closed one bank on Friday, Aug. 6. Earlier in the week, the National Credit Union Administration closed two institutions. There have now been 123 total banking failures so far in 2010.

The latest failure:

Ravenswood Bank, Chicago, Ill.

Ravenswood Bank, Chicago, Illinois, was closed by the Illinois Department of Financial and Professional Regulation - Division of Banking. The Federal Deposit Insurance Corporation (FDIC) was appointed receiver. The FDIC entered into a purchase and assumption agreement with Northbrook Bank and Trust Company, Northbrook, Illinois, to assume all of the deposits of Ravenswood Bank.

The two branches of Ravenswood Bank will reopen as branches of Northbrook Bank and Trust Company. Ravenswood Bank had $264.6 million in assets.

The estimated cost to the Deposit Insurance Fund (DIF) will be $68.1 million.

To recap the credit union failures from earlier in the week:

Certified Federal Credit Union of Commerce, Calif.

The NCUA liquidated Certified Federal Credit Union of Commerce, Calif., on July 31. The NCUA immediately signed an agreement with Vons Employees Federal Credit Union of El Monte, Calif., to assume the assets and liabilities of Certified.

Certified had $37.6 million in assets.

Kappa Alpha Psi Federal Credit Union of Addison, Texas

The NCUA has placed Kappa Alpha Psi Federal Credit Union of Addison, Texas, into liquidation. The NCUA made the decision to close Kappa Alpha Psi FCU and discontinue its operation after determining the credit union is minimally capitalized and there are no reasonable prospects for the credit union to achieve adequate capitalization.

NCUA's Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in Kappa Alpha Psi within one week. Member accounts are insured up to at least $250,000.

Kappa Alpha Psi had $780,000 in assets.

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