On Friday, the Illinois Department of Financial and Professional Regulation closed ShoreBank, headquartered in Chicago, Illinois, and the FDIC was appointed receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Urban Partnership Bank, a newly-chartered institution headquartered in Chicago, Illinois, to assume all of the deposits of ShoreBank.

As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits. Urban Partnership Bank will pay the FDIC a 0.50% premium to assume the deposits of ShoreBank. Urban Partnership Bank agreed to purchase essentially all of the ShoreBank’s assets except for the marketable securities and fixed assets and entered into a loss-share transaction on $1.41 billion of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $367.7 million. ShoreBank is the 114th FDIC-insured institution to fail in the nation this year and the 15th in Illinois