FBOP Corporation was a financial services company based in Oak Park, Illinois, United States. 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 all nine of FBOP's nine banks on the day of closure, but later sold the three Texas-based banks to Prosperity Bancshares.
Key people Chairman: Michael E. Kelly President: Robert M. Heskett SVP and CFO: Michael Dunning
Former subsidiaries Name Market Asset size Cal National Bank Los Angeles $5.6 billion Park National Bank Chicago 3.8 billion San Diego National Bank San Diego, California 2.4 billion Pacific National Bank San Francisco, California 1.3 billion North Houston Bank Houston, Texas 326 million Madisonville State Bank Madisonville, Texas 183 million Bank USA Phoenix, Arizona 138 million Community Bank of Lemont Lemont, Illinois 96 million Citizens National Bank Teague, Texas 64 million
Acquisition history
Date Acquisition Asset Size ($ 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 to assume the assets and deposit liabilities of the closed banks. The FDIC estimates its losses on the combined transaction at $2.5 billion.
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