The Illinois Department of Financial and Professional Regulation's Division of Banking has closed Chicago-based Covenant Bank and appointed the Federal Deposit Insurance Corp. (FDIC) as receiver.
The FDIC says it has entered into a purchase and assumption agreement with Liberty Bank and Trust Co., New Orleans, to assume all of the deposits of Covenant Bank. The sole branch of Covenant will reopen during normal business hours as a branch of Liberty Bank and Trust. Depositors, whose funds will continue to be insured by the FDIC, will automatically become depositors of Liberty.
As of the end of 2012, Covenant Bank had approximately $58.4 million in total assets and $54.2 million in total deposits. In addition to assuming all of the deposits of the failed bank, Liberty Bank and Trust agreed to purchase essentially all of the assets.