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Each depositor insured to at least $250,000 per insured bank

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PR-52-2001 (7-27-2001)

Media Contact:
In Washington, Phil Battey (202) 898-7192
In Chicago, David Barr (202) 494-8061

The Federal Deposit Insurance Corporation today transferred the insured deposits and substantially all the assets of Superior Bank, FSB, Hinsdale, Illinois, to Superior Federal, FSB (New Superior), a newly chartered, full-service mutual savings bank. Superior Bank, with total assets of $2.3 billion and total deposits of $1.6 billion, was closed earlier today by the Office of Thrift Supervision, and the FDIC was named conservator.

"By transferring operations to New Superior, the FDIC will be better able to effect an orderly resolution with little to no disruption to insured depositors and other customers," said John Reich, Acting FDIC Chairman. "Our goal is to have this institution back in private hands before year's end."

All deposit customers automatically become customers of New Superior. Depositors of New Superior have immediate access to their insured funds and customer service will continue uninterrupted as depositors will continue to have access to their funds by writing checks, using debit cards, or using automated teller machines in the same manner as before the change.

Beginning on Monday, Superior Bank's 18 offices located in the Chicago Metropolitan Area will observe their normal operating hours and will continue to offer full banking services, including on-line banking. Superior Bank's loan production and servicing operations also will continue to operate as usual. For additional information, the FDIC has established a toll free number for customers of New Superior. That number is 1-800-331-6306 and will operate today from 6:00 p.m. (CDT) to 12:00 a.m., and then daily from 7:00 a.m. to 7:00 p.m. thereafter. Customers also may visit the FDIC's web site at for further information.

At the time of closing, Superior Bank had about $42.9 million of potentially uninsured deposits held by approximately 1,000 depositors. The FDIC will contact customers with uninsured deposits to arrange an appointment with an FDIC claims agent.

As part of this transaction, the FDIC will provide a $1.5 billion line of credit to New Superior to support continued banking operations. The FDIC Board of Directors decided the least-cost alternative was to organize a new, strong institution that would operate under FDIC control. Superior Bank had experienced significant losses in recent months. The FDIC said that interim ownership will help maximize the value of the institution while maintaining banking services in the communities served by Superior Bank.

Superior Bank is the third FDIC-insured failure of the year, but the first institution insured by the FDIC's Savings Association Insurance Fund (SAIF) to be closed in 2001. The last FDIC-insured failure in Illinois was the National State Bank, Metropolis, on December 14, 2000.

The cost of this resolution to the SAIF will be released upon the final resolution of the conservatorship.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,840 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.

FDIC press releases and other information are available on the Internet via the World Wide Web at and may also be obtained through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).

Last Updated 7/27/2001

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