For more than 30 years the ShoreBank, based in Chicago, has helped those people that weren’t able to find lending assistance anywhere else to purchase homes, start businesses, and apartment buildings. But, on Friday, they failed making it, the 118^th bank to fail so far this year.

The good news is that its deposits and quite a few of its assets were purchased by a consortium philanthropic groups and financial institutions; it will reopen under the name of Urban Partnership Bank on its next usual business day.

Chicago’s ShoreBank Fails

This is Illinois’ 15^th bank that has failed this year, and is expected to cost the FDIC an estimated $367.7 million. The Urban Partnership and the FDIC are said to have to take on an additional $1.41 billion in asset losses with the acquisition of ShoreBank.

ShoreBank started out as a revitalization aspect of mostly low income black neighborhoods. This concept had worked very well for a long period of time, until the recession hit and the borrowers that were using the bank lost their jobs. This created a vacuum in the lending practices as they were no longer able to pay off their loans. Hopefully, this will all work out for the best.