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Bank Failures

Bid Summary

Covenant Bank, Chicago, IL
Closing Date: February 15, 2013

Bidder Type of Transaction Deposit Premium % Asset Premium/(Discount) $(000) SF Loss Share Tranche 1 SF Loss Share Tranche 2 SF Loss Share Tranche 3 Commercial Loss Share Tranche 1 Commercial Loss Share Tranche 2 Commercial Loss Share Tranche 3 Value Appreciation Instrument Conforming Bid Linked
Winning bid and bidder:
Liberty Bank and Trust Company, New Orleans, LA		 All deposit whole bank 0.00% $(18,900) N/A N/A N/A N/A N/A N/A No Yes N/A
Cover Bid:                        
Other Bid: All deposit P&A -3.25% N/A N/A N/A N/A N/A N/A N/A No No - 1 N/A
Other Bid: All deposit whole bank 0.25% $(15,936) N/A N/A N/A N/A N/A N/A No No - 2,3,4 N/A
Other Bid: All deposit whole bank 0.25% $(21,101) N/A N/A N/A N/A N/A N/A No No - 3,4,5 N/A
Other Bid: All deposit whole bank 0.00% $(21,900) N/A N/A N/A N/A N/A N/A No Yes N/A
Other Bid:   All deposit whole bank 0.25% $(22,129) N/A N/A N/A N/A N/A N/A No No - 3,4,5 N/A

Conforming Bid Notes:

1- Requests reduction of premises' monthly rental rate from $20,785 to $7,500.
2- Excludes approximately $20.0 million in securities, loans, OREO, premises and miscellaneous other assets.
3- Excludes all brokered deposits, escrow accounts on related excluded assets and Federal Home Loan Bank advances.
4- Requests reduction of premises' monthly rental rate from $20,785 to $6,000.
5- Excludes approximately $14.1 million in securities, loans, OREO, premises and miscellaneous other assets.

Other Bidder Names & Locations:

Liberty Bank and Trust Company, New Orleans, LA
Seaway Bank, Chicago, IL
Urban Partnership Bank, Chicago, IL

Notes:

  • The winning bidder's acquisition of all the deposits was the least costly resolution compared to a liquidation alternative. The liquidation alternative was valued using valuation models to estimate the market value of the assets. Bids for loss share, if any, were valued using a discounted cash flow analysis for the loss share portfolio over the life of the loss share agreement.
  • The cover bid is the bid that: a. Is less costly than liquidation and b. Is the least costly bid after excluding all bids submitted by the winning bidder.
  • There are more bids than bidders because one or more bidders submitted more than one bid.
  • The Other Bidder Names and the Other Bids are in random order. There is no linkage between bidder names and bids, except in the case of the winning bid.
  • For more information on the bid disclosure policy, see https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/biddocs.html

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Last Updated: December 22, 2021