North Side Bank Seized In State's First Bank Failure Of 2011
CHICAGO (STMW) - A Rogers Park neighborhood bank became Illinois' first bank failure of the year Friday after it was seized by state financial regulators.
Community First Bank - Chicago, which operates one branch near Western Avenue and Howard Street on the Far North Side, was closed by the Illinois Department of Financial and Professional Regulation, according to a release from the Federal Deposit Insurance Corporation.
It will reopen Saturday as a branch of Northbrook Bank and Trust Company, which has assumed all of its deposits, according to the release. All depositors will automatically become Northbrook Bank customers and can still access their funds by writing checks or using ATM or debit cards, the release said.
As of Dec. 31, 2010, Community First Bank - Chicago had approximately $51.1 million in total assets and $49.5 million in total deposits, the release said. Friday's move was thought to be the least disruptive for loan customers and the "least costly resolution" for the FDIC, costing $11.7 million to its Deposit Insurance Fund, the release said.
The bank is the fourteenth FDIC-insured institution to fail in the country this year and the first in Illinois, the release said. The last Illinois bank to be seized was First Suburban National Bank in west suburban Maywood, bank on Oct. 22, 2010.
Customers with questions about the transaction can call the FDIC toll-free at 1-800-430-8098.
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