Continental Illinois will resume some dividends.

The Chicago bank, which was teetering on the brink of bankruptcy 16 months ago, said it will pay dividends on two series of its preferred stock, one of which is held entirely by the Federal Deposit Insurance Corp. Continental said it will make payments totaling $14.5 million on its publicly held Series 1 adjustable-rate preferred stock and will pay the FDIC dividends totaling $40.9 million, although the payment will be made in stock rather than cash. The payments cover the current quarter and the five previous quarters.