Friday, the Illinois Department of Financial and Professional Regulation, Division of Banking closed Broadway Bank , headquartered in Chicago, Illinois, and New Century Bank, headquartered in Chicago, Illinois, and the FDIC was appointed receiver for both banks. As receiver, the FDIC entered into purchase and assumption agreements with MB Financial Bank, National Association, headquartered in Chicago, Illinois, to assume all of the deposits of Broadway Bank and New Century Bank.

As of December 31, 2009, Broadway Bank had approximately $1.2 billion in total assets and $1.1 billion in total deposits. MB Financial Bank did not pay the FDIC a premium for the deposits of Broadway Bank, but did agree to purchase essentially all of the assets of the failed bank. The FDIC and MB Financial Bank entered into a loss-share transaction on $878.4 million of Broadway Bank’s assets.

As of December 31, 2009, New Century Bank had approximately $485.6 million in total assets and $492.0 million in total deposits. MB Financial Bank, National Association did not pay the FDIC a premium for the deposits of New Century Bank, but did agree to purchase essentially all of the assets of the failed bank. The FDIC and MB Financial Bank, National Association entered into a loss-share transaction on $429.1 million of New Century Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) of the Broadway Bank failure will be $394.3 million and the cost of the New Century Bank failure will be $125.3 million. Broadway Bank and New Century Bank are the 52nd and 54th FDIC-insured institutions to fail in the nation this year and the fifth and seventh in Illinois (and the second and fourth of seven Illinois banks closed on Friday). MB Financial had previously acquired Heritage Community Bank, InBank, Corus Bank and Benchmark Bank from the FDIC.