FBOP Corporation

Last updated
FBOP Corporation
Company type Private
Industry Finance and Insurance
DefunctOctober 30, 2009;15 years ago (2009-10-30)
FateFBOP's banking subsidiaries were closed by their chartering agencies, and the agencies appointed the FDIC as receiver.
Headquarters
Oak Park, Illinois
,
United States
Number of locations
108 banking centers
Area served
Arizona, California, Illinois, and Texas
Services Commercial and retail banking
$917 million [1]
Total assets $18.5 billion [2]
Number of employees
4064 [1]
Subsidiaries Bank USA, Cal National Bank, Citizens National Bank, Madisonville State Bank, North Houston Bank, Pacific National Bank, San Diego National Bank
Website Archive of official website

FBOP Corporation was a financial services company based in Oak Park, Illinois, United States. As of mid-2009, it had $18.5 billion in assets and was the 46th largest bank holding company in the United States. [2] On October 30, 2009, FBOP's banking subsidiaries were closed by their chartering agencies and the Federal Deposit Insurance Corporation was appointed as their receiver. [3] The company had over 4064 employees. [1]

Contents

The holding company began as First Bank of Oak Park. FBOP started acquiring other banks in 1990. In 2006, First Bank of Oak Park merged with four other co-owned banks in Illinois to create Park National Bank. FBOP operated banks in Illinois, California, Texas, and Arizona, prior to their closure.

U.S. Bancorp acquired all nine of FBOP's nine banks on the day of closure, but later sold the three Texas-based banks to Prosperity Bancshares. [4]

Key people

Former subsidiaries

NameMarketAsset size
Cal National Bank Los Angeles $5.6 billion [1]
Park National Bank Chicago 3.8 billion [1]
San Diego National Bank San Diego, California 2.4 billion [1]
Pacific National Bank San Francisco, California 1.3 billion [1]
North Houston Bank Houston, Texas 326 million [1]
Madisonville State Bank Madisonville, Texas 183 million [1]
Bank USA Phoenix, Arizona 138 million [1]
Community Bank of Lemont Lemont, Illinois 96 million [1]
Citizens National Bank Teague, Texas 64 million [1]

Acquisition history

The following table summarizes key acquisitions by FBOP Corporation (all asset sizes in USD millions):

DateAcquisitionAsset size
05/31/1990Regency Savings Bank, FSB$325 [5]
01/29/1991Citizens National Bank of Chicago$20 [6]
05/17/1991Cosmopolitan Bank and Trust$110 [6]
11/06/1992Republic Federal Savings Bank$250 [6]
02/28/1993Madisonville State Bank$100
03/18/1994Irving Federal Savings Bank$72 [7]
01/01/1995Citizens National Bank$25
03/31/1995North Houston Bank$72
06/30/1995International Savings Bank$250 [7]
04/12/1996San Diego branches of California Federal Bank, FSB$386
07/01/1996Torrance Bank, SSB$107 [6]
11/01/1996TOPA Savings Bank and TOPA Thrift & Loan$525 [5]
01/24/1997Dean Witter Trust, FSB$13
02/28/1997San Diego National Bank$229 [8]
01/07/1999Pullman Bank and Trust Company$525 [6]
04/30/1999Calumet Federal Savings & Loan Association of Chicago$495 [7]
07/19/1999Sterling Savings Bank$9
09/12/1999Chicago City Bank & Trust Company$176
02/18/2000Los Padres Savings Bank$65
04/30/2001Peoples Bank of California$3,228 [9]
12/31/2001Fidelity Federal Bank$2,315 [10]
09/20/2002Sterling Bank$12
09/30/2002BankUSA$116
01/13/2003Park National Bank & Trust of Chicago$246
11/07/2003Continental Community Bank$12
07/01/2004California Savings Bank$864
01/02/2007United Community Bank of Lisle$273
10/01/2007Cardunal Savings Bank, FSB$180

Bank failure

FBOP's subsidiaries lost an estimated $800 million [11] when the United States Treasury placed government-sponsored mortgage investors Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) into conservatorship and wiped out preferred stockholders. As a result, FBOP posted an operating loss of $708 million for 2008. By the end of June, FBOP's resources had dwindled so low that the firm ranked below 98% of similar bank holding companies in terms of tier 1 leverage ratio, a measure of bank capital.

In August 2009, FBOP signed a so-called written agreement with the Federal Reserve that gave it a schedule to raise capital, improve risk management and reduce its concentration of commercial real estate loans. The bank was to submit a capital plan within 30 days.

FBOP failed to raise enough capital to satisfy the terms of the agreement. On October 30, 2009, FBOP's subsidiaries were closed by their chartering agencies and the Federal Deposit Insurance Corporation was appointed as their receiver. The FDIC entered into a purchase and assumption agreement with Minnesota-based U.S. Bancorp to assume the assets and deposit liabilities of the closed banks. The FDIC estimates its losses on the combined transaction at $2.5 billion. [12]

References

  1. 1 2 3 4 5 6 7 8 9 10 11 12 "FBOP Corporation". Holding Companies. iBanknet.com. November 13, 2007. Archived from the original on October 31, 2007. Retrieved January 22, 2008.
  2. 1 2 "Top 50 bank holding companies". Federal Financial Institutions Examination Council. September 30, 2009. Archived from the original on April 13, 2014. Retrieved October 31, 2009.
  3. ↑ "U.S. Bank, NA, of Minneapolis, Minnesota, Assumes All of the Deposits of Nine Failed Banks in Arizona, California, Illinois and Texas". FDIC Press Release PR-195-2009. October 30, 2009. Retrieved November 27, 2020.
  4. ↑ "PROSPERITY BANK® TO ACQUIRE TEXAS BRANCHES OF U.S. BANK". Prosperity Bank Press Release. Houston. January 19, 2010.
  5. 1 2 "Formations of, Acquisitions by, and Mergers of Bank Holding Companies." Federal Register (September 26, 1996).
  6. 1 2 3 4 5 "The billionaire next door: FBOP’s Michael Kelly." Crain’s Chicago Business (December 12, 2005).
  7. 1 2 3 "Regency Savings Bank, A FSB — History." USBankLocations.com.
  8. ↑ "H.2 Actions of the Board, 1996, No. 50." Federal Reserve (December 14, 1996).
  9. ↑ "L.A.’s No. 2 Bank Grows as Affiliates Prepare to Merge." Los Angeles Business Journal (February 2002).
  10. ↑ "Actions of the Board, Week Ending January 20, 2001." Federal Reserve (January 20, 2001).
  11. ↑ "FBOP". Crain's Chicago Business. Archived from the original on 2010-02-10. Retrieved 2020-11-28.
  12. ↑ "9 Banks In Major Holding Company Fail". CNN. October 30, 2009. Retrieved May 2, 2010.

Further reading

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