Covenant Bank, Chicago, IL
Closing Date: February 15, 2013
Failed Bank Information for Covenant Bank, Chicago, IL
| 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 Failed Financial Institution Bid Disclosure Policy.