April 24--Edgebrook Bank's capital levels and loan quality are "critically deficient," according to the Federal Deposit Insurance Corp.
The regulator has filed a temporary cease-and-desist order against the Chicago-based bank, ordering it, for example, to stop issuing loans without the FDIC's approval. About 35 percent of the bank's loans are severely delinquent, the FDIC said.
A representative of the bank could not be reached for comment.
The order was dated March 18 and made public Friday.
The bank, founded in May 2005, has one branch, at 6000 W. Touhy Ave., and has $94.8 million in assets.
The FDIC gave several examples of loans it found troubling, including one made last summer to a borrower who wanted to acquire a multifamily property. The bank financed the entire purchase and failed to get a current appraisal of the property, the FDIC said. At the time the loan was issued, the borrower had seven other loans with the bank and all those loans were troubled, it said.
The FDIC also noted the bank's heavy emphasis on construction lending.
Edgebrook "may continue to fund legally binding commitments originated before Feb. 18, 2015," the FDIC said.
byerak@tribpub.com
