FDIC Unable to Find Acquiring Financial Institution for Illinois Bank

Illinois financial institution ""New City Bank"":www.newcitybankchicago.com/ has closed its doors. The ""Federal Deposit Insurance Corporation"":www.fdic.gov/ (FDIC) announced the collapse of the Chicago-based bank and revealed that it has been unable to find a financial institution to take over the bank's operations.

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To end last week, the ""Illinois Department of Financial and Professional Regulation's"":www.idfpr.com/ division of banking shuttered New City Bank, appointing the FDIC as the receiver. Recent reports from the bank showed that the financial institution had $71.2

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million in total assets and $72.4 million in total deposits as of final day of 2011.

The FDIC has approved the payout of insured deposits for the financial institution. Additionally, the organization also noted that checks will be mailed directly to New City Bank's depositors for the amount of their insured money.

Starting on Monday, depositors of New City Bank with held funds in excess of $250,000 will be able to visit the FDIC's online site to determine their insurance coverage. The FDIC says it will establish the full tally for uninsured deposits once it obtains full information from the relevant customers.

As receiver, the FDIC will retain all assets from New City Bank for disposition. The FDIC has instructed all of the bank's borrowers to continue making their loan payments as usual.

Extending an estimate for costs to the ""Deposit Insurance Fund"":http://www.fdic.gov/deposit/insurance/ (DIF), the FDIC says the closing of New City Bank will likely require around $17.4 million from the DIF. Nationally, the bank's failure brings the U.S. total to 13 for 2012.

New City Bank is the second Illinois financial institution to fall so far this year. The first closed bank in the state was ""Charter National Bank and Trust"":cn-bank.com/, which was shuttered on February 10.