The Illinois Department of Financial and Professional Regulation – Division of Banking on Jan. 27 shut down Seaway Bank and Trust Co.
The FDIC was appointed receiver, with Dallas-based State Bank of Texas to assume all the deposits and purchase $309.0 million of the failed Chicago-based institution's assets. The FDIC will hold the remaining assets for later disposition.
Seaway Bank and Trust's 10 branches will reopen as branches of State Bank of Texas during their normal business hours, and deposits in these branches will continue to be FDIC-insured.
As of Sept. 30, 2016, Seaway Bank and Trust had approximately $361.2 million in total assets and $307.1 million in total deposits.
The failure cost the FDIC's Deposit Insurance Fund $57.2 million. The bank is the second failure this year and the first in the state of Illinois.
Seaway Bank and Trust is a unit of Seaway Bancshares Inc. while SBT Bancshares Inc. is the parent company of State Bank of Texas.