The Illinois Department of Financial and Professional Regulation has closed the $58.4 million-asset Covenant Bank on Chicago's West Side.

The bank, previously known as Community Bank of Lawndale, was bought in 2008 by a group that included Rev. Bill Winston and members of his congregation at Living World Christian Center of Forest Park, according to a June 2012 profile of the bank by Crain's Chicago Business.

The African-American owned bank was seeking $3 million of capital. In early November, regulators gave the bank 45 days to get recapitalized or face seizure.

The Federal Deposit Insurance Corp. entered into an agreement with Liberty Bank and Trust in New Orleans on Friday to transfer Covenant's assets and its $54.2 million in deposits. Liberty, with $545 million in assets, is also an African-American owned bank.

The failure is expected to cost the Deposit Insurance Fund $21.8 million. Three banks have failed so far this year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.