Safety and Soundness: Failed Bank Review of Charter National Bank and Trust, Hoffman Estates, Illinois.

摘要

This memorandum presents the results of our review of the failure of Charter National Bank and Trust (Charter) located in Hoffman Estates, Illinois. Charter opened in July 1980 and operated a main office and a branch office in Hoffman Estates. The bank was wholly owned by Hanover Bank Corporation, Hanover Park, Illinois, a one-bank holding company. The Office of the Comptroller of the Currency (OCC) closed Charter and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on February 10, 2012. As of December 31, 2011, the bank had $93.9 million in total assets. As of June 30, 2012, FDIC estimated that the loss to the Deposit Insurance Fund is $20.4 million. Because the loss to the Deposit Insurance Fund is less than $150 million, as set forth by section 38(k) of the Federal Deposit Insurance Act (FDIA), we conducted a review of the failure of Charter that was limited to (1) ascertaining the grounds identified by OCC for appointing FDIC as receiver and (2) determining whether any unusual circumstances exist that might warrant a more in-depth review of the loss. In performing our review we (1) examined documentation related to the appointment of FDIC as receiver and (2) interviewed an OCC problem bank specialist. We performed our fieldwork from February to April 2012.