Closed Friday, July 31, 2009 · Harvey, Cook County, Illinois
Mutual Bank
Mutual Bank's estimated cost to the Deposit Insurance Fund makes it the 39th-costliest failure on FDIC record since 1934. The estimated loss came to 50% of its assets, one of the 30 highest ratios among the 583 failures since 2000. In the three years to the second quarter of 2008, its assets grew 151%.
On the books, 2001 to 2009
Total assets peaked at $1.7 billion and were 6% lower at the final report. Equity capital went from 8.3% of assets in the third quarter of 2001 to 0% at the last report. By then 34% of its loans were 90 days or more past due or no longer accruing interest. The deepest annual loss, $79.6 million, was booked in 2009 in only part of the year.* 2009: January to June only, the last report before closing.
Size against the other 2009 failures
Total assets of each 2009 failure, log scale; Mutual Bank in red.
By assets it ranked 21st of the 140 failures in 2009. Within Illinois it ranks eighth by size of the 185 failures recorded since 1934. Across the failures of 2009, the median estimated loss came to 27% of assets. In the size ranking of that year, just above it was Vineyard Bank, National Association of Rancho Cucamonga, California ($1.6 billion, loss 17% of assets); just below, New South Federal Savings Bank of Irondale, Alabama ($1.5 billion, loss 21% of assets). Every 2009 failure in the explorer.
Regulators closed five banks that day. The largest of the others was Peoples Community Bank of West Chester, Ohio, at $606 million.
Failures in Illinois
In 2009 regulators closed 21 banks in Illinois; this was the 13th. The previous failure there was First State Bank of Winchester of Winchester, on July 2, 2009. The next was InBank of Oak Forest, on September 4, 2009. Cook County has 77 failed banks on FDIC record since 1934. Closest in time: Bank of Lincolnwood (2009), Founders Bank (2009), InBank (2009), Platinum Community Bank (2009), Corus Bank, N.A. (2009).