A small Chicago bank became the second federally insured institution to close this year, regulators announced late Friday.
Highland Community Bank, located in the city's South Side, closed its doors over the weekend on orders from the Illinois Department of Financial & Professional Regulation's banking division [1].
Working as receiver, FDIC [2] said it has entered into an arrangement with United Fidelity Bank in Evansville, Indiana, which has agreed to take on all of Highland Community Bank's deposits and will purchase "essentially all" of the failed bank's assets.
As of the end of 2014, regulators estimate Highland Community Bank had approximately $53.5 million in deposits and $54.7 million in total assets.
FDIC estimates the cost of the closing to its Deposit Insurance Fund will be about $5.8 million.
Highland Community Bank is Illinois' first closure so far this year. Despite a decline overall in annual bank closings, the state—and particularly the Chicago region—remains a hot spot for failed banks. Of the 18 institutions that shut down last year, five were in Illinois, and three of those were in or around Chicago.