Heritage Community Bank Fails; MB Financial to Assume Assets

By Tim State in News on Feb 28, 2009 7:45PM

Heritage Community Bank was the third bank in Illinois to fail after being shut down by state and federal regulators on Friday. It is the second Chicago bank to go under so far this year. The FDIC announced that MB Financial was the winning bid and will purchase their assets.

When the former Heritage branches open on Saturday, customers’ accounts will have been transferred to MB Financial, the FDIC announced. Depositors are otherwise unaffected.

The south suburban Glenwood Bank ran into trouble with a series of bad construction loans with suburban residential developers. The closing came four months after regulators ordered the bank to strengthen management, improve lending standards and raise capital. [Trib, Crain’s]