Illinois

Failures in 2009 shot past the 100-mark late Friday as regulators swooped into seven community banks in the Midwest and southeast.

In what it is calling a first step toward replenishing its capital, Mercantile Bancorp Inc. in Quincy, Ill., said it intends to merge its flailing Florida bank with a stronger unit.

Regulators have strengthened an order against Second Federal Savings and Loan in Chicago, directing the $251 million-asset thrift to hold more capital than usually expected of institutions.

But First Busey raised $122 million last week, becoming the latest example of a struggling company to find investors in the thawing capital markets.

The Federal Reserve Board has ordered Bankers' Bancorp Inc. in Springfield, Ill., and its subsidiary Independent Bankers' Bank, to improve accounting practices.

With its stock trading under a dollar since June 23, Midwest Banc Holdings Inc. is in danger of being delisted.

Michael E. Kelly, the billionaire who built FBOP Corp. by snapping up ailing banks around the country in the 1980s and 1990s, now may have to give up some control of this far-flung empire — or lose all of it.

FBOP Corp. of Oak Park, Ill., which is low on capital at five of its nine banks, has a written agreement with regulators requiring it to improve quickly.

Time ran out on Corus Bank late Friday as regulators closed the once-high-flying Chicago condominium lender and sold its operations to another institution.

WASHINGTON — Federal and state regulators shut five banks in Iowa, Missouri, Arizona and Illinois late Friday, raising the number of failures this year to 89.

InBank of Oak Forest, Ill., went from well capitalized to insolvent in no time at all, and industry observers are pointing to the $209 million-asset bank as an extreme example of an aggressive regulatory approach to deteriorating credit quality.

The $7.8 billion-asset company said Thursday that it had proposed two separate swaps — one for its $100 million of subordinated notes, the other for its $125 million of capital securities.

After four consecutive quarterly losses, the depleted Mercantile Bancorp Inc. in Quincy, Ill., is exploring ways to recapitalize itself.

The capital-strapped Amcore Financial Inc. of Rockford, Ill., announced Wednesday that it has agreed to sell two of its Wisconsin branches to First National Bank and Trust Co., in Beloit, Wis.

After a consent order from its regulators landed it in default on a line of credit, Amcore Financial Inc. in Rockford, Ill., has paid down some of the debt and gotten an extension to repay the rest.

Regulators closed institutions in five states late Friday, bringing the year's toll to 69 and leaving the FDIC with almost $1 billion more in losses.

A year after posting its first loss, Corus Bankshares is out of capital and out of options. The $7 billion-asset Chicago company reported Friday that it lost $487.3 million in the second quarter, leaving its bank unit with a capital deficit of $157 million.

For a year and a half, Taylor Capital Group in Rosemont, Ill., has tried to distinguish the growth of its commercial and industrial lending from the credit problems in its residential real estate portfolio.

With its credit quality increasingly troubled, Midwest Banc Holdings Inc. was already among the relatively small group of banks to defer dividend payments on the government's preferred shares.

Amcore Financial, a $5.1 billion-asset company in Rockford, Ill., reported a loss of $10.7M in the second quarter, its sixth consecutive loss.