Chicago-based ShoreBank, which for more than three decades made loans to South and West siders who might not have gotten financing elsewhere to buy homes, apartment buildings and start businesses, failed Friday. It had struggled for months to raise sufficient funds to stay afloat.
Its deposits and most of its assets were acquired by a consortium of major U.S. financial institutions and philanthropic groups and will reopen under the name Urban Partnership Bank.
ShoreBank was the 15th Illinois bank to fail this year and the 118th to be seized by federal and state regulators nationally. Its failure is expected to cost the Federal Deposit Insurance Corp. $367.7 million. The FDIC, which is funded by the banking industry, said it received only one bid for the bank.
The beat goes on.