The Federal Deposit Insurance Corp. (FDIC) closed Ravenswood Bank of Chicago last Friday, brining the tally of failed banks to 109 in the United States this year. Northbrook Bank and Trust Company will purchase the assets and liabilities of Ravenswood, according to the FDIC.
The bank has $270 million in deposits as of June 30. Economists expect more small community banks to fail this year, as the economic recession took a far larger toll on smaller banks than the large banks, many of which have bigger financial coffers and received large bailout packages from the federal government.
In recent months, weakness in the residential real estate sector has spread to the commercial real estate sector, which many smaller, regional banks serve. FDIC insures all consumer deposits of up to $250,000.