Texas bank takes over as Chicago bank is 5th in state to fail in 2014
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A bank with locations in the Near West Side and West Ridge neighborhoods became the fifth in Illinois to fail this year, and will be taken over by a Texas-based bank, the FDIC announced Friday.
National Republic Bank of Chicago, with branches at 1201 W. Harrison and 2615 W. Devon, was closed today by the federal Office of the Comptroller of the Currency, which named FDIC as receiver, a statement from the federal agency said.
As of June 30, the bank had about $954.4 million in total assets and $915.3 million in total deposits, according to FDIC.
State Bank of Texas, based in Dallas, will assume deposits of the failed bank and both branches are expected to reopen for normal business hours on Saturday, according to FDIC.
But the branches will become State Bank of Texas branches and customers will have deposits switched to the bank. In addition to assuming all deposits, State Bank of Texas will purchase more than $626 million of the failed bank’s assets, with FDIC retaining the rest “for later disposition,” the statement said.
“Depositors of The National Republic Bank of Chicago will automatically become depositors of State Bank of Texas. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits,” the FDIC statement said.
Customers can continue to use National Republic Bank of Chicago checks and ATM/debit cards, according to FDIC, and loan payment should be made as usual.
The change is expected to cost the federal Deposit Insurance Fund about $111.6 million, but, “Compared to other alternatives, State Bank of Texas’ acquisition was the least costly resolution,” FDIC said.
National Republic Bank of Chicago is the 16th FDIC-insured bank to fail in 2014, and the fifth in Illinois.