Illinois Bank Fails

State regulators Friday shut down Bank of Lincolnwood of Lincolnwood, Ill., bringing to 37 the total number of U.S. banks and savings and loans that have failed during 2009.

The regulators appointed the Federal Deposit Insurance Corp. receiver, and the FDIC arranged for Republic Bank of Chicago, of Oak Brook, Ill. to take over all of the failed institution's deposits.

Bank of Lincolnwood's two offices were set to reopen Saturday morning as branches of Republic Bank of Chicago.

The previous two banks to fail (on May 22) were also Illinois institutions: Strategic Capital Bank of Champaign and Citizens National Bank of Macomb.

Please see TheStreet.com's Bank Failure Map for an interactive summary of all previous bank and savings and loan failures during 2008 and 2009.

This was the sixth Illinois bank to fail this year, tying the state with Georgia for the largest number of bank failures in 2009.

For 2008 and 2009 to date, Georgia is No. 1, with 11 bank or thrift failures, followed by California, with nine, and Illinois, with seven. Florida has had five and Nevada four.

Large bank holding companies that have acquired failed institutions since the start of 2008 include J.P. Morgan Chase (JPM Quote), which acquired Washington Mutual, the largest bank or thrift ever to fail in the U.S.; SunTrust Banks (STI Quote); Regions Financial (RF Quote); Zions Bancorp (ZION Quote); Fifth Third Bancorp(FITB Quote); U.S. Bancorp (USB Quote) and BB&T Corp (BBT Quote).

Bank of Lincolnwood was included in TheStreet.com's latest list of undercapitalized banks and thrifts, which was published last week. As of March 31, the institution's tier 1 leverage ratio was just 1.16%, and its total risk-based capital ratio was 2.63%. These ratios need to be at least 5% and 10%, respectively, for most institutions to be considered well-capitalized under regulatory capital requirements.

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