Corus Bankshares, Inc. 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 A time deposit or term deposit (also known as a certificate of deposit in the United States, and as a guaranteed investment certificate in Canada) is a deposit in a financial institution with a specific maturity date or a period to maturity, c ...

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 U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders the Gulf of Mexico to the west, Alabama to the northwest, Georgia (U.S. state), Georgia to the north, the Atlantic ...

and

California California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...

, 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 ...

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 a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was 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 corporate charter, charter, bank regulation ...

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

Chicago, Illinois Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...

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 will be $1.7 billion. A month later,

Starwood Capital Group Starwood Capital Group is an investment firm headquartered in Miami Beach, Florida. It is managed by Barry Sternlicht. It was co-founded by Sternlicht and Robert Faith in 1991. In 1993, Faith left Starwood to found Greystar Real Estate Partn ...

later purchased at 40% equity share in a portfolio of construction loans and real estate owned 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 Banks 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 Defunct companies based in Chicago