Minority lender National Republic Bank of Chicago failed Friday and was taken over by Dallas-based State Bank of Texas.
It was the fifth bank failure in Illinois this year and the 16th nationally. The Federal Deposit Insurance Corp. estimates that the cost to its insurance fund of the failure will be $112 million.
National Republic’s two branches will reopen as branches of State Bank of Texas, which is assuming all $915 million of National Republic’s deposits.
State Bank of Texas also agreed to buy $626 million of the failed bank’s $954 million assets, which typically consist of loans.
The last bank to fail in Illinois was GreenChoice Bank in Chicago on July 25.
As of June 30 there were 76 banks owned by Asian or Pacific Islander Americans, according to Federal Deposit Insurance Corp. records. National Republic Bank of Chicago ranked in the top 10.
In July, the U.S. Office of the Comptroller of the Currency ordered the dismissal of Hiren Patel as chief executive and chairman and Edward Fitzgerald as president.
Its website touted services to hotels and gas stations in particular. As of June 30, almost 50 percent of its loans were seriously delinquent, according to records on the FDIC website.
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