Corus Bankshares, Inc. (, previously ) operated as the holding company for Corus Bank, N.A., a United States company that offered consumer and corporate banking products and services.

Corus Bank

The bank's deposit products included checking, savings, money market, and time deposit accounts. Its loan portfolio primarily comprised commercial real estate loans, including condominium construction and condominium conversion loans; commercial loans; and residential real estate loans. The bank focused its lending activities in various metropolitan areas in

Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...

and

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

, as well as in Las Vegas, New York City, and Washington, D.C. It also provides safe deposit boxes, as well as clearing, depository, and credit services to check cashing industry locations in the Chicago area and in Milwaukee, Wisconsin. As of December 31, 2006, the bank operated 11 retail banking branches in the Chicago metropolitan area. Corus Bankshares was founded in 1958 and is based in Chicago, Illinois. Corus Bank is also known for having a relatively few number of branches for a publicly traded stock. As of the end of the first quarter of 2008, Corus had a Texas ratio of 70%.

Financial crisis

Kensington Brooklyn development site financed by Corus Bank - 23 Caton Place

As of August 1, 2009, Corus reported that it was "highly undercapitalized" and in need of government assistance. At the end of the previous quarter, its

Tier 1 capital Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view.By definition of Bank for International Settlements. It is composed of ''core capital'', which consists primarily of common stock and disclosed res ...

had fallen to negative $157 million. Normally, banks with negative Tier 1 capital are immediately closed by the

Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures cr ...

(FDIC). In mid-August 2009 the bank was named as one of the biggest of more than 150 U.S. lenders which own nonperforming loans that equal 5 percent or more of their holdings. 5 percent is a threshold that former regulators have stated can wipe out a bank's equity and threaten its survival. On September 11, 2009, Corus Bank, N.A., Chicago, IL was closed by the

Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (OCC) is an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all natio ...

, and the FDIC was named Receiver. MB Financial Bank of

Chicago, Illinois (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

assumed all deposits and approximately $3 billion of assets making all depositors of Corus Bank customers of MB Financial. The FDIC estimates the cost to the

Deposit Insurance Fund The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures credi ...

will be $1.7 billion. A month later, Starwood Capital Group later purchased at 40% equity share in a portfolio of construction loans and

real estate owned Real estate owned, or REO, is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. A foreclosing ...

assets formerly held by the bank. The FDIC held the remaining 60% equity share of the $4.5 billion portfolio.

References

{{Reflist

External links

MB Financial Bank Official Site

FDIC Official Site
Holding companies established in 1958 Companies based in Chicago 1958 establishments in Illinois Holding companies of the United States American companies established in 1958 Defunct banks of the United States Holding companies disestablished in 2009 American companies disestablished in 2009 Banks disestablished in 2009 Banks established in 1958