"Notice to depositors of First United Bank [address] **Your Intitution Has Been Closed**"
...which is not an auspicious beginning to a letter, let me tell you.
"On September 28, 2012, the Illinois Department of Financial and Professional Regulations--Division of Banking, closed First United Bank [address] (the "Failed Institution"), and appointed [the FDIC] as Receiver."
On the plus side, the bank has been acquired by another bank and all my deposits are intact and safe. On the minus side, MY FREAKIN' BANK FAILED.
Thanks, Obama! Thanks, Democrats!
I have to say, the entire process was completely transparent to me. I didn't even know anything happened until I visited my aunt and uncle on Friday night; they told me all about it. *sigh*
The 28th was the day I took the motorcycle to the bank and discovered the broken luggage rack, then came back in the Jeep to take money from my IRA so I could pay the property taxes on the bunker. I don't know if it was that morning or that evening that the big to-do happened.
The bank succumbed to a pile of bad loans across virtually all categories. In addition to the bad commercial real estate loans that have brought down so many local banks, First United had a large amount of delinquent business loans and home mortgages.Hence the "Thanks, Obama! Thanks, Democrats!" line.
The failure of First United Bank, which had five branches, is expected to cost the deposit insurance fund $48.6 million.It's also the seventh bank to fail in Illinois this year.
First United is the 43d FDIC-insured institution in the nation to fail this year. U.S. bank closures are running at a slower pace than in 2011. By this time last year, 73 banks had failed.
My aunt and uncle (who are old enough to remember the Depression) were surprised there wasn't a bank run. Well, most people didn't know the bank failed until after the fact (like me) and besides the FDIC guaranteed the deposits, as it's supposed to.
Still, that's hitting kind of close to home, isn't it?