Illinois Regulators Shut Lincolnwood Bank

Linda McGlasson • June 8, 2009 An Illinois bank, Bank of Lincolnwood, was the 37th bank to fail thus far in 2009 when it was closed last Friday by the Illinois Department of Financial and Professional Regulation, Division of Banking.

The regulators appointed the FDIC as receiver, and the failed bank's deposits were assumed by the Republic Bank of Chicago, Oak Brook, IL.

The Bank of Lincolnwood's two offices reopened on Saturday as branches of Republic Bank. The failed bank had assets of $214 million and deposits of $202 million. The Republic Bank will buy $162 million of the failed bank's assets. The cost to the FDIC's Deposit Insurance Fund will be $83 million. Bank of Lincolnwood is the sixth bank to fail in Illinois in 2009, and the 37th in the country. The last bank to close in Illinois was Citizens National Bank on May 22.

The FDIC recently increased the number of banks on its "troubled bank list" to more than 300.

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About the Author

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.