All American Bank, Des Plaines, IL, Closed By Regulators

All American Bank, Des Plaines, Illinois, was closed by the State of Illinois, which appointed the FDIC as receiver.  The FDIC sold the failed bank to International Bank of Chicago.  Under a purchase and assumption agreement, International Bank will assume all deposits and purchase all assets of failed All American Bank.

All American Bank, established in August 2005, was a very small bank with total assets of only $37.8 million.  All American Bank is the second smallest bank failure of 2011 by asset size.  The smallest banking failure of 2011 occurred in April when tiny Rosemount National Bank was closed by Minnesota state regulators.

All American Bank was a locally owned and operated full service community bank.  The Bank’s website boasted that “All American Bank makes it easy to borrow money.”  Many of the Bank’s customers discovered, however, that it was difficult to repay money borrowed from All American Bank.

By early 2009, the default rate at All American Bank began to increase dramatically.  The troubled asset ratio of All American Bank increased nonstop from early 2009 and at June 30 was 219%.  A bank with a troubled asset ratio in excess of 100% usually winds up failing and All American Bank was no exception to this rule.  All American Bank promoted itself as “safe and secure” on the Bank’s website.

At June 30, 2011, All American Bank had total assets of $37.8 million and total deposits of $33.4 million.

The International Bank of Chicago had $238 million in assets at June 30, 2011, and has been profitable for the past two years.  The purchase of failed All American Bank marks the first purchase of a failed bank by International Bank of Chicago.

The cost to the FDIC Deposit Insurance Fund for the failure of All American Bank is $6.5 million.  All American Bank is the nation’s 85th banking failure of 2011 and the 9th in Illinois.

Comments

  1. Dara M. Rivetna says:

    To whom it mayconcern:
    I had invested $185,000 in the bank in April 2005. I am wondering what I should do to find out more about the closure and can I get any of my money back.

    Dara M. Rivetna

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