Illinois-based Bank of Lincolnwood Fails: 37th of 2009

Bank regulators closed Illinois-based Bank of Lincolnwood on Friday, a small two-branch institution that became the 37th U.S. bank to fail this year and the sixth in the state of Illinois.

From FDIC: Bank of Lincolnwood…was closed today by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank of Chicago, Oak Brook, Illinois, to assume all of the deposits of Bank of Lincolnwood.

As of May 26, 2009, Bank of Lincolnwood had total assets of approximately $214 million and total deposits of $202 million. Republic Bank of Chicago agreed to purchase approximately $162 million in assets. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $83 million. Republic Bank of Chicago’s acquisition of all the deposits was the “least costly” resolution for the DIF compared to alternatives.

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