Two more Colorado banks are shut down, 5 total for the year

We expect to see more residential land and other small commercial assets enter the market next year as Signature Bank was taken over by the FDIC. The new bank Points West Community Bank, will likely acquire a number of the troubled and non-performing assets at a lower value than was being carried on Signature Bank's books increasing the probably that values will be closer to market. As five banks have been taken over by the FDIC, we expect banks will continue to feel pressure to sell their commercial assets to get their non-performing asset ratios below 2% of total assets. For information on distressed real estate opporunities in Northern Colorado contact Loveland Commercial at 970-667-7000 or www.lovelandcommercial.com.

Banks Shut in Illinois and Colorado
By The Associated Press

WASHINGTON (AP) — Regulators shut a bank in Illinois and two in Colorado on Friday, raising to 51 the number of bank failures this year.

The Federal Deposit Insurance Corporation seized First Chicago Bank and Trust in Chicago, Colorado Capital Bank in Castle Rock, Colo., and Signature Bank in Windsor, Colo.

Northbrook Bank and Trust, based in Northbrook, Ill., agreed to assume the deposits and most of the assets of First Chicago, which had about $959.3 million in assets and $887.5 million in deposits.

First Citizens Bank and Trust, based in Raleigh, N.C., assumed all the deposits and essentially all the assets of Colorado Capital, which had $717.5 million in assets and $672.8 million in deposits.

Points West Community Bank, based in Julesburg, Colo., agreed to assume Signature Bank’s $64.5 million in deposits and essentially all of its $66.7 million in assets.

Four banks have failed in Colorado this year. First Chicago is the fifth lender to collapse this year in Illinois.
In 2010, regulators seized 157 banks.