FBOP Corporation
Encyclopedia
FBOP Corporation was a bank holding company based in Oak Park
, Illinois
, USA. As of mid 2009, it had $18.5 billion in assets and was the 46th largest bank holding company in the United States. 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. The company had over 4064 employees.
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 FBOP's nine banks on the day of closure.
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.
Oak Park, Illinois
Oak Park, Illinois is a suburb bordering the west side of the city of Chicago in Cook County, Illinois, United States. It is the twenty-fifth largest municipality in Illinois. Oak Park has easy access to downtown Chicago due to public transportation such as the Chicago 'L' Blue and Green lines,...
, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
, USA. As of mid 2009, it had $18.5 billion in assets and was the 46th largest bank holding company in the United States. On October 30, 2009, FBOP's banking subsidiaries were closed by their chartering agencies and the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
was appointed as their receiver. The company had over 4064 employees.
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
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
to create Park National Bank. FBOP operated banks in Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, and Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
, prior to their closure.
U.S. Bancorp
U.S. Bancorp
U.S. Bancorp is a diversified financial services holding company, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth largest commercial bank in the United States based on $330 billion in assets. U.S. Bank ranks as the sixth largest bank in the U.S. based on...
acquired FBOP's nine banks on the day of closure.
Key People
- Chairman: Michael E. Kelly
- President: Robert M. Heskett
- SVP and CFO: Michael Dunning
Former Subsidiaries
| Name | Market | Asset size |
|---|---|---|
| Cal National Bank Cal National Bank California National Bank was a consumer and business bank in the Southern California area.-Overview:Cal National Bank originally began in 1996 when FBOP Corporation acquired Torrance Bank... |
Los Angeles Los Angeles, California Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California... |
$5.6 billion |
| Park National Bank | Chicago Chicago Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles... |
3.8 billion |
| San Diego National Bank | San Diego, California San Diego, California San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round... |
2.4 billion |
| Pacific National Bank | San Francisco, California San Francisco, California San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland... |
1.3 billion |
| North Houston Bank | Houston, Texas Houston, Texas Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ... |
326 million |
| Madisonville State Bank | Madisonville, Texas Madisonville, Texas Madisonville is a city in Madison County, Texas, United States. The population was 4,159 at the 2000 census. It is the county seat of Madison County. Both the City of Madisonville and the County of Madison were named for U.S... |
183 million |
| Bank USA | Phoenix, Arizona Phoenix, Arizona Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data... |
138 million |
| Community Bank of Lemont | Lemont, Illinois Lemont, Illinois Lemont is a village located in Cook, DuPage, and Will Counties in the U.S. state of Illinois, and is roughly southwest of Chicago. The population was 16,625 at the 2007 Special Census.-History:... |
96 million |
| Citizens National Bank | Teague, Texas Teague, Texas Teague is a city in Freestone County, Texas, United States. The population was 4,557 at the 2000 census.-Settlement:The area was first settled around the time of the Civil War. During the latter... |
64 million |
Acquisition History
| Date | Acquisition | Asset Size ($ millions) |
|---|---|---|
| 05/31/90 | Regency Savings Bank, FSB | $325 |
| 01/29/91 | Citizens National Bank of Chicago | $20 |
| 05/17/91 | Cosmopolitan Bank and Trust | $110 |
| 11/06/92 | Republic Federal Savings Bank | $250 |
| 02/28/93 | Madisonville State Bank | $100 |
| 03/18/94 | Irving Federal Savings Bank | $72 |
| 01/01/95 | Citizens National Bank | $25 |
| 03/31/95 | North Houston Bank | $72 |
| 06/30/95 | International Savings Bank | $250 |
| 04/12/96 | San Diego Branches of California Federal Bank, FSB | $386 |
| 07/01/96 | Torrance Bank, SSB | $107 |
| 11/01/96 | TOPA Savings Bank and TOPA Thrift and Loan | $525 |
| 01/24/97 | Dean Witter Trust, FSB | $13 |
| 02/28/97 | San Diego National Bank | $229 |
| 01/07/99 | Pullman Bank and Trust Company | $525 |
| 04/30/99 | Calumet Federal Savings and Loan Association of Chicago | $495 |
| 07/19/99 | Sterling Savings Bank | $9 |
| 09/12/99 | Chicago City Bank and Trust Company | $176 |
| 02/18/00 | Los Padres Savings Bank | $65 |
| 04/30/01 | Peoples Bank of California | $3,228 |
| 12/31/01 | Fidelity Federal Bank | $2,315 |
| 09/20/02 | Sterling Bank | $12 |
| 09/30/02 | BankUSA | $116 |
| 01/13/03 | Park National Bank and Trust of Chicago | $246 |
| 11/07/03 | Continental Community Bank | $12 |
| 07/01/04 | California Savings Bank | $864 |
| 01/02/07 | United Community Bank of Lisle | $273 |
| 10/01/07 | Cardunal Savings Bank, FSB | $180 |
Bank Failure
FBOP's subsidiaries lost an estimated $800 million 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
U.S. Bancorp
U.S. Bancorp is a diversified financial services holding company, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth largest commercial bank in the United States based on $330 billion in assets. U.S. Bank ranks as the sixth largest bank in the U.S. based on...
to assume the assets and deposit liabilities of the closed banks. The FDIC estimates its losses on the combined transaction at $2.5 billion.