FIs closed: ShoreBank, Chicago, Illinois, USA
On Friday, 20 August, 2010, ShoreBank, Chicago, Illinois was closed by the The Illinois Department of Financial & Professional Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Urban Partnership Bank, Chicago, Illinois, a newly-chartered institution, to assume all of the deposits of ShoreBank.
The 15 branches of ShoreBank will reopen as branches of Urban Partnership Bank, including those in Detroit, Michigan, and Cleveland, Ohio, under their normal business hours, including those offices with Saturday hours.
As of 30 June, 2010, ShoreBank had approximately USD2,160 million in total assets and USD1,540 million in total deposits.
Urban Partnership Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of ShoreBank.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD367.7 million.
ShoreBank is the 114th FDIC-insured institution to fail in the nation this year and the fifteenth in Illinois.
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