Two federally insured financial institutions, one in the Midwest and one in the South, were seized by their regulators last week.
In Illinois, the state’s Department of Financial and Professional Regulation – Division of Banking closed down All American Bank on Friday.
The Des Plaines bank was placed into receivership, and the Federal Deposit Insurance Corp. was named receiver.
All American has been in business since 2005. Just nine people were employed at the company.
Deposits stood at $33 million as of June 30, while total assets were $38 million. Among the bank’s holdings were less than $2 million in home loans, over $19 million in commercial real estate assets and less than $3 million in construction-and-development loans.
All American was hit with an FDIC cease-and-desist order in January, another in June 2010 and one in March 2010.
International Bank of Chicago assumed all of the failed bank’s deposits and acquired all of its assets.
The demise of All American is expected to cost the Deposit Insurance Fund just $7 million.
All American was the 85th FDIC-insured institution to fail so far in 2011. A total of nine banks have failed this year in Illinois.
A day earlier, the National Credit Union Administration took control of Birmingham Financial Federal Credit Union and placed it into conservatorship.
“The decision to conserve a credit union enables the institution to continue regular operations with expert management in place, correcting previous service and operational weaknesses,” the NCUA said in a statement. “During conservatorship, members may therefore continue to conduct business at the credit union.”
The Birmingham, Ala., credit union had just 429 members. The financial institution served employees of Birmingham Housing Authority and Birmingham Health Care.
A little more than a million dollars in assets were on the books of the failed credit union as of the end of June.
Birmingham was the 19th credit union failure tracked so far this year by Mortgage Daily.
In all, 119 mortgage-related businesses have been shuttered in 2011.
