Bank of Shorewood -- and Its Plainfield Branch -- Closed Friday by FDIC

The failed Friday evening, shut down by the state and leaving the FDIC on the hook for about $25.6 million, officials said.

Heartland Bank & Trust Co., based in Bloomington, has agreed to acquire the bank and its branches. They will reopen Saturday under the Heartland name.

“Bank of Shorewood was closed at 7 p.m. (Friday) by the Illinois Department of Financial and Professional Regulation, which appointed the FDIC receiver,” according to a statement released by Heartland Bank.

“Customers can be assured that their accounts are safe, secure, and readily accessible,” the statement said. “They can continue to use their checks and ATM/debit cards to access their funds as usual. Direct deposits and automatic payments will also continue as scheduled.”

The main Bank of Shorewood is located at 700 E. Jefferson. Its two branches are at 5650 W. Caton Farm Road in Plainfield and at 430 E. Miississippi Ave. in Elwood, where it's also known as the bank of Elwood.

The FDIC estimates the failure will the Deposit Insurance Fund $25.6 million, according to a report by Sun-Times Media. Heartland Bank and Trust Company’s acquisition was the least costly resolution, the FDIC reported.

Bank of Shorewood is the 62nd FDIC-insured institution to fail in the nation this year and the sixth in Illinois.

The Bank of Shorewood launched an $8 million stock offering in May in response to an FDIC order, the Sun-Times report said. They needed to generate $2.6 million or more to meet the FDIC’s directive.

Bank of Shorewood had about $110.7 million in total assets and $104.0 million in total deposits as of June 30, Sun-Times Media reported. Heartland will assume all of the deposits of the failed bank and will purchase all of the assets.

In its media statement, Heartland officials wrote the bank is an “independently owned community bank with assets of $1.9 billion and has offices in 30 communities in Illinois and northeast Missouri.”

For more information on Heartland Bank, go to www.hbtbank.com. Customers can also call the FDIC at 800-823-5028 or go online at www.fdic.gov/bank/individual/failed/shorewood.html.