FOR IMMEDIATE RELEASE
April 23, 2010
MB FINANCIAL BANK, NATIONAL ASSOCIATION, CHICAGO, ILLINOIS, ASSUMES ALL OF THE DEPOSITS OF BROADWAY BANK, CHICAGO, ILLINOIS
Broadway Bank, Chicago, 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 MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Broadway Bank.
The four branches of Broadway Bank will reopen on Saturday as branches of MB Financial Bank, National Association. Depositors of Broadway Bank will automatically become depositors of MB Financial Bank, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from MB Financial Bank, National Association that it has completed systems changes to allow other MB Financial Bank, National Association branches to process their accounts as well.
This evening and over the weekend, depositors of Broadway 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, 2009, Broadway Bank had approximately $1.2 billion in total assets and $1.1 billion in total deposits. MB Financial Bank, National Association did not pay the FDIC a premium for the deposits of Broadway Bank. In addition to assuming all of the deposits of the failed bank, MB Financial Bank, National Association agreed to purchase essentially all of the assets.
The FDIC and MB Financial Bank, National Association entered into a loss-share transaction on $878.4 million of Broadway Bank's assets. MB Financial 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 who have questions about today's transaction can call the FDIC toll-free at 1-800-887-7340. 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; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/broadway.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $394.3 million. MB Financial Bank, National Association's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. Broadway Bank is the 52nd FDIC-insured institution to fail in the nation this year, and the fifth in Illinois. The last FDIC-insured institution closed in the state was Amcore Bank, National Association, Rockford, earlier today.
