For a second time in three weeks, regulators have shuttered a bank that others were unwilling to acquire.
The Illinois Department of Financial and Professional Regulation closed the $71.2 million-asset New City Bank in Chicago, The Federal Deposit Insurance Corp. announced it had approved a payout for insured depositors because it was unable to locate a buyer for the failed bank.
The FDIC will mail checks to the insured deposits. The bank had deposits of $72.4 million at Dec. 31, 2011. The agency said the amount of uninsured depositors will be determined once it obtains additional information from those customers.
Meanwhile, it said it will retain the bank’s assets for further disposition. The failure is expected to cost the Deposit Insurance Fund $17.4 million. New City is the 13th bank to fail so far this year.
Last month, the FDIC was unable to find a buyer for Home Savings of America in Little Falls, Minn., after it was closed by the Office of the Comptroller of the Currency. The failure of that institution, which had $434.1 million in assets, is expected to cost the Deposit Insurance Fund $38.8 million.