Several cease-and-desist orders had been issued against a Chicago bank before it was seized last week by state and federal banking regulators.
On Friday, the Illinois Department of Financial & Professional Regulation – Division of Banking closed down Highland Community Bank.
The failed financial institution was established by its founders in November 1970. It had three domestic locations in Illinois.
As of Sept. 30, the bank had 27 employees.
Highland Community had $54 million in deposits as of Dec. 31 and $55 million in assets. Assets as of Sept. 30 included $10 million in residential loans, $8 million in commercial mortgages and $2 million in construction-and-land-development loans.
The state named the Federal Deposit Insurance receiver of the failed bank.
The FDIC had issued a cease-and-desist order against Highland community in May 2011. Highland Community was hit with another FDIC cease-and-desist order in January 2010, while a $5,000 civil money penalty was issued by the FDIC in March 2010, and another cease-and-desist order was issued by the FDIC in September 2009.
After a confidential auction was conducted, the FDIC executed a purchase and assumption agreement to
sell most of the assets and all of the deposits to United Fidelity Bank fsb.
The FDIC projects its Deposit Insurance Fund will suffer a $6 million hit from Highland Community’s demise.
So far, two FDIC-insured banks have failed in 2015.
