CHICAGO – The Illinois Department of Financial and Professional Regulation’s (IDFPR) Division of Banking today announced that it has taken possession and control of Bank of Lincolnwood, Lincolnwood, Illinois at 5 pm for the purpose of receivership and liquidation. The bank’s main office was in Lincolnwood and one branch location also located in Lincolnwood. The Division of Banking appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the bank under the provisions of the Illinois Banking Act. No advance notice is given to the public when a financial institution is closed.
Shortly after the bank was closed, the bank will re-open as a branch of Republic Bank of Chicago, Oak Brook, Illinois and all Bank of Lincolnwood’s customers will automatically become depositors of Republic Bank of Chicago and consumers will not lose any funds.
“While financial institutions around the country work to serve the needs of personal and commercial customers and clients, we remain confident that state-chartered commercial banks will be less affected by the economic volatility than the investment banks and financial holding companies that have generated media headlines,” said Michael T. McRaith, IDFPR Acting Secretary. “On behalf of Illinois consumers, state financial regulators will continue our proactive financial regulation to ensure deposits and assets remain protected and that consumers always remain priority number one.”
In closing the bank, Director of Banking Jorge A. Solis indicated that “the Bank of Lincolnwood was operating in an unsafe and unsound manner, and the bank’s board of directors was either unable or unwilling to infuse the additional capital needed to keep the bank open. We are pleased that the Lincolnwood community will continue to be provided banking services by Republic Bank of Chicago.”
As part of the receivership process, the FDIC and the Division of Banking approved Republic Bank of Chicago to purchase selected assets and liabilities of the Bank of Lincolnwood. Republic had assets of $1.2 billion as of March 31, 2009 and operated 13 banking offices in Cook and Du Page counties.
As of March 31, 2009, the Bank of Lincolnwood had total assets of $213 million.
Customers with questions about how deposit insurance works or who would like more information about the failure can visit the FDIC’s web site at www.fdic.gov or call the FDIC toll-free at 1-877-ASK FDIC.