Bank of Lincolnwood, the latest in US bank failures

After the failure of Citizens National Bank, Macomb on May 22, 2009, Bank of Lincolnwood, Illinois,  yesterday became the sixth bank  in the state and the 37th in the nation to fail this year.

Bank of Lincolnwood was closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

Republic Bank of Chicago, Oak Brook, Illinois, will assume all of the deposits of Bank of Lincolnwood, FDIC said..

''Bank of Lincolnwood's deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,'' FDIC said in a press release.

As onf 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.