Skip to main content

Chicago Thrift Shut Down After CEO’s Suicide

Phil Hall
Dec 20, 2017
A 104-year-old thrift in Chicago with no financial problems was abruptly shut down by federal regulators following the suicide of its chief executive

A 104-year-old thrift in Chicago with no financial problems was abruptly shut down by federal regulators following the suicide of its chief executive.
 
According to a Crain’s Chicago report, Washington Federal Bank for Savings, a $166 million-asset institution with two branches, was closed on Dec. 15 by the Office of the Comptroller of the Currency (OCC), which claimed it "acted after finding the bank had experienced substantial dissipation of assets due to unsafe or unsound practices, and that the bank's assets were less than its obligations to its creditors and others."
 
The closure came 12 days after John Gembara, the thrift’s Chairman, CEO and President, was found dead after hanging himself.
 
However, the thrift showed evidence that it was financially ailing.
 
As of Sept. 30, its filings with the Federal Deposit Insurance Corp. (FDIC) showed $1.7 million in net income year-to-date, an annualized return on equity of 10.7 percent and virtually no delinquent loans. In 2016, Washington Federal generated a respectable $2.3 million in net income.
 
The parent of Chicago-based Royal Savings Bank agreed to acquire the insured deposits and $23.7 million of the thrift’s assets from the FDIC, with the remainder staying with the regulator until it can either sell or collect them to reimburse uninsured depositors.

 
Published
Dec 20, 2017
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021