# FBOP Corporation

FBOP Corporation was a financial services company based in Oak Park, Illinois, United States. As of mid-2009, it had $18.5 billion in assets and was the 46th largest bank holding company in the United States. On October 30, 2009, FBOP's banking subsidiaries were closed by their chartering agencies and the Federal Deposit Insurance Corporation was appointed as their receiver. The company had over 4064 employees.
The holding company began as First Bank of Oak Park. FBOP started acquiring other banks in 1990. In 2006, First Bank of Oak Park merged with four other co-owned banks in Illinois to create Park National Bank. FBOP operated banks in Illinois, California, Texas, and Arizona, prior to their closure.
U.S. Bancorp acquired all nine of FBOP's nine banks on the day of closure, but later sold the three Texas-based banks to Prosperity Bancshares.

## Key people

* Chairman: Michael E. Kelly
* President: Robert M. Heskett
* SVP and CFO: Michael Dunning

## Former subsidiaries

| Name | Market | Asset size |
| Cal National Bank | Los Angeles | $5.6 billion |
| Park National Bank | Chicago | 3.8 billion |
| San Diego National Bank | San Diego, California | 2.4 billion |
| Pacific National Bank | San Francisco, California | 1.3 billion |
| North Houston Bank | Houston, Texas | 326 million |
| Madisonville State Bank | Madisonville, Texas | 183 million |
| Bank USA | Phoenix, Arizona | 138 million |
| Community Bank of Lemont | Lemont, Illinois | 96 million |
| Citizens National Bank | Teague, Texas | 64 million |

## Acquisition history

| Date | Acquisition | Asset Size ($ millions) |
| 05/31/90 | Regency Savings Bank, FSB | $325 |
| 01/29/91 | Citizens National Bank of Chicago | $20 |
| 05/17/91 | Cosmopolitan Bank and Trust | $110 |
| 11/06/92 | Republic Federal Savings Bank | $250 |
| 02/28/93 | Madisonville State Bank | $100 |
| 03/18/94 | Irving Federal Savings Bank | $72 |
| 01/01/95 | Citizens National Bank | $25 |
| 03/31/95 | North Houston Bank | $72 |
| 06/30/95 | International Savings Bank | $250 |
| 04/12/96 | San Diego Branches of California Federal Bank, FSB | $386 |
| 07/01/96 | Torrance Bank, SSB | $107 |
| 11/01/96 | TOPA Savings Bank and TOPA Thrift and Loan | $525 |
| 01/24/97 | Dean Witter Trust, FSB | $13 |
| 02/28/97 | San Diego National Bank | $229 |
| 01/07/99 | Pullman Bank and Trust Company | $525 |
| 04/30/99 | Calumet Federal Savings and Loan Association of Chicago | $495 |
| 07/19/99 | Sterling Savings Bank | $9 |
| 09/12/99 | Chicago City Bank and Trust Company | $176 |
| 02/18/00 | Los Padres Savings Bank | $65 |
| 04/30/01 | Peoples Bank of California | $3,228 |
| 12/31/01 | Fidelity Federal Bank | $2,315 |
| 09/20/02 | Sterling Bank | $12 |
| 09/30/02 | BankUSA | $116 |
| 01/13/03 | Park National Bank and Trust of Chicago | $246 |
| 11/07/03 | Continental Community Bank | $12 |
| 07/01/04 | California Savings Bank | $864 |
| 01/02/07 | United Community Bank of Lisle | $273 |
| 10/01/07 | Cardunal Savings Bank, FSB | $180 |

## Bank failure

FBOP's subsidiaries lost an estimated $800 million when the United States Treasury placed government-sponsored mortgage investors Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) into conservatorship and wiped out preferred stockholders. As a result, FBOP posted an operating loss of $708 million for 2008. By the end of June, FBOP's resources had dwindled so low that the firm ranked below 98% of similar bank holding companies in terms of tier 1 leverage ratio, a measure of bank capital.
In August 2009, FBOP signed a so-called written agreement with the Federal Reserve that gave it a schedule to raise capital, improve risk management and reduce its concentration of commercial real estate loans. The bank was to submit a capital plan within 30 days.
FBOP failed to raise enough capital to satisfy the terms of the agreement. On October 30, 2009, FBOP's subsidiaries were closed by their chartering agencies and the Federal Deposit Insurance Corporation was appointed as their receiver. The FDIC entered into a purchase and assumption agreement with Minnesota-based U.S. Bancorp to assume the assets and deposit liabilities of the closed banks. The FDIC estimates its losses on the combined transaction at $2.5 billion.