Illinois Bank Shuts Down in Seventh Failure of 2014

An Illinois bank has closed its doors for good, bringing the national tally of FDIC-insured bank collapses to seven so far this year.

The agency announced Friday the closure of AztecAmerica Bank, which was shut down by the Illinois Department of Financial & Professional Regulation. The bank, based in Berwyn, is the state's second failure of 2014.

To protect depositors, FDIC announced a purchase and assumption agreement with Republic Bank of Chicago, which has assumed all of AztecAmerica's estimated $65.0 million in deposits. The Chicago institution has also agreed to purchase approximately $58.3 million of the failed bank's assets, with FDIC holding on to the remaining $8 million for later disposition.

As a result of the collapse, the estimated cost to the government's Deposit Insurance Fund will be $18.0 million.