Feds Close Glenwood Bank

Heritage Community to reopen as MB Financial

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    NEWSLETTERS

    Chicago Sun-Times / Jean Lachat

    Heritage Community Bank of Glenwood on Friday became the third Illinois bank to fail so far this year.

    The bank, which has assets of about $230 million, lost $21.2 million in the fourth quarter.

    The bank's four offices will reopen on Saturday as branches of MB Financial Bank, following a purchase and assumption agreement arranged by the Federal Deposit Insurance Corporation.

    In addition to assuming all of the deposits of the failed bank, including those from brokers, MB Financial Bank agreed to purchase approximately $231 million in assets at a discount rate of $14.5 million. The FDIC will retain the remaining assets for later disposition.

    Over the weekend, depositors of Heritage Community Bank can access their money by writing checks or using ATM or debit cards, the bank said in a statement. Checks drawn on the bank will continue to be processed, and loan customers should continue to make their payments as usual.

    The other two Illinois banks to fail so far this year are the Corn Belt Bank and Trust Company, of Pittsfield, and the National Bank of Commerce, of Berkeley.