Report: Down Goes Corus!
By Daniel at 11 September, 2009, 5:50 pm
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by CalculatedRisk on 9/11/2009 05:14:00 PM
From Crain’s ChicagoBusiness: MB Financial to take over Corus Bank branches
MB Financial Inc. will assume the branches and deposits of Corus Bank … will be seized at the end of business Friday by federal regulators, according to a person familiar with the matter.
Most of the assets of Corus, made up primarily of delinquent condo loans spread throughout the U.S., will be sold by the Federal Deposit Insurance Corp. in the next few weeks, according to this person. Several private-equity firms and real estate outfits are lined up to bid for those assets, according to numerous published reports.
No word from the FDIC yet …
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Corus Bankshares:
Corus Bankshares, Inc. (NASDAQ: CORS) operates as the holding company for Corus Bank, N.A. that offers consumer and corporate banking products and services. The bank’s deposit products include checking, savings, money market, and time deposit accounts. Its loan portfolio primarily comprises commercial real estate loans, including condominium construction and condominium conversion loans; commercial loans; and residential real estate loans. The bank focuses its lending activities in various metropolitan areas in Florida and California, as well as in Las Vegas, New York City, and the Washington, D.C. It also provides safe deposit boxes, as well as clearing, depository, and credit services to check cashing industry locations in the Chicago area and in Milwaukee, Wisconsin. As of December 31, 2006, the bank operated 11 retail banking branches in the Chicago metropolitan area. Corus Bankshares was founded in 1958 and is based in Chicago, Illinois. Corus Bank is also known for having a relatively few number of branches for a publicly traded stock.
As of the end of the first quarter of 2008, Corus had a Texas ratio of 70%.
Caught up in the financial crisis
As of August 1, 2009, Corus reported that it was “highly undercapitalized” and in need of government assistance. At the end of the previous quarter, its Tier 1 capital had fallen to negative $157 million. Normally, banks with negative Tier 1 capital are immediately closed by the FDIC.
In mid-August 2009 the bank was named as one of the biggest of more than 150 U.S. lenders which own nonperforming loans that equal 5 percent or more of their holdings. 5 percent is a threshhold that former regulators have stated can wipe out a bank’s equity and threaten its survival.
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