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2 Depression-Era Institutions Succumb to Great Recession

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Another two depression-era financial institutions succumbed to the Great Recession. The latest bank failure was in Illinois. An additional institution was thrown into liquidation.

The Illinois Department of Financial and Professional Regulation closed down Waukegan Savings Bank on Friday.

The Waukegan, Ill., bank was established in 1924. As of the end of the first quarter, it employed 26 people.

Residential loan assets were $45 million, while $9 million in commercial real estate loans were on the books and another $2 million in construction-and-land-development loans were owned.

The Federal Deposit Insurance Corp. was named receiver of Waukegan, and First Midwest Bank was awarded the winning bid in a deal where it assumed all of the failed bank’s $78 million in total deposits and acquired all of its $89 million in total assets.

The FDIC issued a prompt corrective action against Waukegan Savings Bank in December 2011 and a cease-and-desist order against the bank in April 2010.

Losses from Waukegan’s failure were $20 million.

It was the 40th FDIC-insured bank failure so far during 2012.

An attempt to revive A M Community Credit Union through conservatorship was unsuccessful. A M was taken over by the National Credit Union Administration and the Wisconsin Office of Credit Unions in February.

On Wednesday, the Wisconsin Office of Credit Unions threw the Kenosha, Wis., credit union into liquidation and appointed the NCUA as liquidating agent. The financial institution was chartered in 1933.

TruStone Financial Federal Credit Union acquired A M Community’s $122 million in total assets. TruStone will take over the 15,993 members of the failed credit union, which served residents and employees of Kenosha and Racine Counties and Chrysler Corp. employees.

“A M Community Credit Union’s declining financial condition led to its closure and subsequent purchase and assumption,” the NCUA stated.

Mortgage Daily has tracked 64 mortgage-related entities that have failed or been closed down during 2012.

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