Illinois added to its growing ranks of
last week, as
Bank of Lincolnwood
became the 37th U.S. institution to be closed by regulators this year.
All 62 bank failures since the beginning of 2008 are detailed on
interactive bank failure map:
Illinois state regulators on Friday seized Bank of Lincolnwood and appointed the Federal Deposit Insurance Corp. receiver. The FDIC arranged for
Republic Bank of Chicago
, of Oak Brook, Ill. to take over all of the failed institution's deposits.
In addition to the failed institution's deposits, Republic Bank of Chicago agreed to purchase $162 million of its assets, with the FDIC retaining the rest for later disposition. The agency projected that its losses from Bank of Lincolnwood's failure would total $83 million.
Lincolnwood was the sixth Illinois bank to fail this year, tying the state with Georgia for the largest number of bank failures in 2009. The previous two Illinois banks to fail were
Strategic Capital Bank
of Champaign and
Citizens National Bank
of Macomb, both on May 22.
leads all states with 11 bank or thrift failures during 2008 and 2009, followed by
with nine failures, Illinois with seven,
with five and Nevada with four.
Bank of Lincolnwood was included in
latest list of
, 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
Large bank holding companies that have acquired failed institutions during 2008 and 2009 include
, which acquired
, the largest bank or thrift ever to fail in the U.S.,
Fifth Third Bancorp
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