Regulators fail Chicago Bank

The Office of the Comptroller of the Currency has closed GreenChoice Bank, Chicago. At the time of the failure, the bank had $72.9 million in assets and $71 million in deposits..Providence Bank, LLC, South Holland, Ill., assumed its deposits and bought $67.7 million of its assets from the Federal Deposit Insurance Corp. The failure is expected to cost the Deposit Insurance Fund $14.2 million..GreenChoice originally operated as a mutual called Family Federal Savings of Illinois. Following difficulty with its capital levels, the bank was bought by GreenChoice Holdings in 2010 after it completed a voluntary supervisory conversion, an organizational shift reserved for critically undercapitalized mutual institutions which are able to find investors..GreenChoice billed itself as a "holistically green community bank" and tried to inject an environmentally-friendly approach into all aspects of its business model..The leverage ratio at the bank initially improved, increasing to 12.24 percent in the third quarter of 2010 from 0.29 percent in the previous quarter..In the first quarter of 2014, however, its leverage ratio slipped below the 2 percent threshold set by regulatory guidelines for failure..The failure is the 14th of the year, and the fourth in Illinois. The last bank failure in Illinois was Moline-based Valley Bank in June.