A Chicago bank with nearly $1 billion in assets that was more than a century old has been shut down.
On Friday, the Office of the Comptroller of the Currency stepped in, seized and closed down The National Republic Bank of Chicago.
“The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” the regulator said in a statement. “The OCC also found that the bank incurred losses that depleted its capital, the bank is critically undercapitalized, and there is no reasonable prospect that the bank will become adequately capitalized.”
The failed financial institution was handed over to the Federal Deposit Insurance Corp. as receiver.
FDIC data indicate that 71 people were on staff at National Republic as of June 30.
The bank entered a formal agreement with the OCC in April 2010.
Total deposits stood at $915 million. Total assets were $954 million and included $37 million in residential loans, $697 million in commercial real estate loans and $29 million in construction-and-land-development loans.
State Bank of Texas won a bid to assume all of the failed bank’s deposits and acquire $626 million of its assets.
The FDIC estimates that losses from the failure will be $112 million.
National Republic Bank was the 16th FDIC-insured bank failure thus far during 2014.
Mortgage Daily has tracked 38 mortgage-related closings and failures so far this year.
