Corus Bankshares
Defunct American bank holding company that operated Corus Bank and failed during the 2008 financial crisis.
Last updated August 26, 2026
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Overview
Corus Bankshares, Inc. was an American bank holding company headquartered in Chicago, Illinois. Its principal subsidiary was Corus Bank, N.A., a commercial bank that provided consumer and corporate banking services. The company was founded in 1958 and developed a business model centered on banking deposits and real-estate lending, particularly commercial real-estate finance. Corus Bank offered standard deposit products, including checking, savings, money-market, and time-deposit accounts. Its lending activities included commercial loans, residential real-estate loans, and commercial real-estate loans, with a notable concentration in condominium construction and condominium-conversion projects. The bank also provided safe-deposit facilities and specialized clearing, depository, and credit services for check-cashing businesses in the Chicago area and Milwaukee. Its retail branch network remained relatively small; at the end of 2006, it operated 11 branches in the Chicago metropolitan area. The institution was known for having comparatively few branches despite being a publicly traded banking company. Corus expanded its real-estate lending beyond Illinois. Its lending markets included metropolitan areas in Florida and California, along with Las Vegas, New York City, and Washington, D.C. This geographic and portfolio exposure made the company especially vulnerable when the U.S. housing and commercial-property markets deteriorated during the financial crisis. By the end of the first quarter of 2008, Corus reportedly had a Texas ratio of approximately 70 percent, indicating substantial pressure from problem assets relative to its capital base. The company's condition worsened in 2009. Corus reported that it was highly undercapitalized and required government assistance. At the end of the preceding quarter, its Tier 1 capital had fallen below zero, to approximately negative $157 million. The bank was also identified among U.S. lenders with nonperforming loans equal to at least 5 percent of holdings, a level viewed by former regulators as potentially capable of eliminating a bank's equity and threatening its survival. On September 11, 2009, the Office of the Comptroller of the Currency closed Corus Bank, N.A., and the Federal Deposit Insurance Corporation became receiver. MB Financial Bank of Chicago assumed Corus's deposits and approximately $3 billion in assets, allowing depositors to continue their banking relationships through the acquiring institution. The FDIC estimated the cost to the Deposit Insurance Fund at approximately $1.7 billion. In the following month, Starwood Capital Group acquired a 40 percent equity interest in a portfolio of construction loans and real-estate-owned assets formerly associated with Corus, while the FDIC retained the remaining 60 percent interest in the approximately $4.5 billion portfolio. Corus Bankshares subsequently sought Chapter 11 bankruptcy protection in 2010 while facing the prospect of dissolution. The bank holding company therefore ceased to function as an independent operating banking group, and its banking subsidiary's failure became the defining event in the company's history.
History
Corus Bankshares was established in 1958 and became the holding company for Corus Bank, N.A., a Chicago-based commercial bank. The group operated primarily in the United States and combined conventional deposit banking with a significant commercial-real-estate lending business. Its deposit products included checking, savings, money-market, and time-deposit accounts. The bank also provided commercial and residential loans, safe-deposit facilities, and specialized clearing, depository, and credit services for check-cashing businesses in the Chicago area and Milwaukee. The bank's most consequential business exposure was commercial real estate. Corus financed commercial property and placed particular emphasis on condominium construction and condominium-conversion loans. Although headquartered in Chicago, it pursued lending in several major metropolitan markets, including areas of Florida and California, Las Vegas, New York City, and Washington, D.C. Its retail presence was comparatively limited: the bank operated 11 Chicago-area branches at the end of 2006. This combination of a small branch network and concentrated real-estate lending distinguished Corus from larger branch-based consumer banks. The collapse of the U.S. housing and commercial-property markets placed severe pressure on Corus's loan portfolio. By the end of the first quarter of 2008, its Texas ratio was reported at about 70 percent, reflecting a high level of distressed assets relative to capital. During 2009, the bank disclosed that it was highly undercapitalized and required government assistance. Its Tier 1 capital had fallen to approximately negative $157 million at the end of the previous quarter. Corus was also included among lenders whose nonperforming loans represented at least 5 percent of holdings, a level associated with serious threats to bank equity and solvency. On September 11, 2009, the Office of the Comptroller of the Currency closed Corus Bank, N.A. The FDIC was appointed receiver, and MB Financial Bank assumed Corus's deposits and approximately $3 billion in assets. The transaction transferred deposit accounts to the acquiring bank and made MB Financial the continuing banking institution for Corus depositors. The FDIC estimated that the closure would cost the Deposit Insurance Fund approximately $1.7 billion. The disposition of Corus-related assets continued after the bank's closure. In October 2009, Starwood Capital Group purchased a 40 percent equity interest in a portfolio consisting of construction loans and real-estate-owned assets formerly associated with Corus. The FDIC retained the other 60 percent of the approximately $4.5 billion portfolio. Corus Bankshares itself filed for Chapter 11 bankruptcy protection in 2010 while facing possible dissolution. Its history consequently illustrates the vulnerability of specialized commercial-real-estate lenders during the financial crisis and the use of receivership, deposit transfer, asset-sale structures, and corporate bankruptcy to wind down a failed banking group.
- 2010
Holding company files for Chapter 11
[1]Corus Bankshares filed for Chapter 11 bankruptcy protection while facing possible dissolution.
- 2009
Corus Bank closed by regulators
[1]On September 11, the Office of the Comptroller of the Currency closed Corus Bank, N.A., and the FDIC was appointed receiver.
- 2009
Deposits and assets transferred to MB Financial
[1]MB Financial Bank assumed all Corus deposits and approximately $3 billion in assets.
- 2009
Former Corus real-estate portfolio partially sold
[1]Starwood Capital Group acquired a 40 percent equity interest in a roughly $4.5 billion portfolio of construction loans and real-estate-owned assets, while the FDIC retained 60 percent.
- 2008
Capital and asset-quality pressures intensify
[1]At the end of the first quarter, Corus had a reported Texas ratio of approximately 70 percent. Later in 2008 and into 2009, deteriorating real-estate assets placed increasing pressure on its capital.
- 2006
Chicago-area branch network recorded
[1]At the end of 2006, Corus Bank operated 11 retail branches in the Chicago metropolitan area.
- 1958
Company founded
[1]Corus Bankshares was founded in the United States and later operated as the holding company for Corus Bank, N.A.
Products and positioning
A Chicago-based bank holding company with a relatively small branch network and a business focus on commercial real-estate lending, especially condominium-related projects.
Consumer banking
Deposit accounts
Corus Bank provided conventional deposit products, including checking, savings, money-market, and time-deposit accounts. These products supported the bank's consumer and corporate banking activities and supplied funding for its lending operations.
Commercial lending
Commercial real-estate lending
Commercial real-estate loans formed the core of Corus Bank's lending portfolio. The bank operated in several major U.S. metropolitan markets and was particularly active in financing property development during the period before the financial crisis.
Real-estate finance
Condominium construction and conversion loans
Corus specialized in loans for condominium construction and the conversion of existing properties into condominiums. This concentration linked the bank's performance closely to housing demand, property prices, development activity, and the liquidity of real-estate markets.
Lending
Commercial and residential loans
Alongside its real-estate development finance, Corus offered broader commercial loans and residential real-estate loans. These products complemented its corporate and consumer banking services, although the bank's commercial-property exposure became central to its eventual failure.
Transaction banking
Specialized check-cashing services
The bank supplied clearing, depository, and credit services to check-cashing industry locations in the Chicago area and Milwaukee. This was a specialized institutional service rather than a mass-market retail product.
Brand decisions
2010
Corus Bankshares files for Chapter 11 bankruptcy protectionOtherBackground
After the operating bank had been closed and its deposits and assets transferred, the holding company faced possible dissolution.
Action taken
Corus Bankshares filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
Aftermath
The filing marked the transition from bank resolution to the wind-down of the holding company.
2009
Regulators close Corus Bank and appoint the FDIC as receiverOtherBackground
Corus faced severe asset-quality and capital problems during the financial crisis. The bank reported negative Tier 1 capital and a need for government assistance.
Action taken
The Office of the Comptroller of the Currency closed Corus Bank, N.A., on September 11, 2009, and the FDIC assumed the receivership.
Aftermath
MB Financial Bank assumed all deposits and approximately $3 billion in assets, while the FDIC estimated a roughly $1.7 billion cost to the Deposit Insurance Fund.
Estimated cost to the Deposit Insurance Fund. $1.7 billion estimated cost (2009 bank closure)
2009
Disposition of former Corus construction-loan and real-estate assetsM&ABackground
Following the bank's failure, the FDIC controlled a large portfolio of construction loans and real-estate-owned assets formerly associated with Corus.
Action taken
Starwood Capital Group acquired a 40 percent equity interest in the portfolio, with the FDIC retaining the remaining 60 percent.
Aftermath
The transaction created a shared ownership structure for a portfolio valued at approximately $4.5 billion.
Approximate portfolio value. $4.5 billion (2009 asset disposition)
Sources1 sources
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