Illinois state regulators closed Seaway Bank and Trust in Chicago on Friday, marking the year’s second failure.
The $361.2 million-asset Seaway’s operations, including 10 branches, were sold to State Bank of Texas in Dallas. State Bank agreed to assume all of Seaway’s $307.1 million of deposits and to purchase $309 million of its assets. The Federal Deposit Insurance Corp. will retain the remaining assets for later disposition.
The failure is estimated to cost the FDIC $57.2 million. Seaway is the first Illinois bank to be closed since Edgebrook Bank in Chicago in May 2015.
Seaway, once the largest black-owned bank in the U.S., had been operating under a consent order with the FDIC and Illinois state regulators since December 2014 that required it to improve its loan quality and financial condition. It’s holding company, Seaway Bancshares, had also entered into a written agreement with the Federal Reserve in June 2015.