South Loop bank fails
Founded in 2003, investors include recently indicted county commissioner
03/09/2012 10:08 PM
New City Bank, located at 900 S. Michigan Ave. in the South Loop, was closed on Friday by the Federal Deposit Insurance Corp.
The bank had $72.4 million in deposits, but only $71.2 million in total assets as of December 31, 2011, according to an FDIC press release.
New City was founded near the peak of the South Loop’s condo boom in October 2003. It dubbed itself downtown’s neighborhood bank, saying on its website that it was “founded on a philosophy of providing customers with a neighborhood banking experience in the big city.”
The FDIC said in a press release that it tried but failed to find a buyer for the bank, so it took on the bank’s assets itself and is sending out checks to depositors who had up to $250,000 in the bank. The FDIC is taking ownership of the bank’s loans, as well.
One of the bank’s original investors was William Beavers, the Cook County Commissioner who was indicted last month on federal tax charges. Crain’s Chicago Business reported on Feb. 23, the day Beavers was indicted, that the FDIC was trying to find a buyer for New City. The bank posted a $9 million loss in 2011, they reported at the time. Beavers owns 0.47 percent of the bank, they also said.