- Republic Bank of Chicago Assumes All of the Deposits of Citizens BankTrust Company of Chicago
- May 3, 2010
- Law Firm: Alston & Bird LLP - Atlanta Office
Friday, the Illinois Department of Financial and Professional Regulation, Division of Banking closed Lincoln Park Savings Bank, headquartered in Chicago, Illinois, and the FDIC was appointed receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Northbrook Bank and Trust Company, headquartered in Northbrook, Illinois, to assume all of the deposits of Lincoln Park Savings Bank.
As of December 31, 2009, Lincoln Park Savings Bank had approximately $199.9 million in total assets and $171.5 million in total deposits. Northbrook Bank and Trust Company paid the FDIC a premium of 0.4% to assume all of the deposits of Lincoln Park Savings Bank and agreed to purchase essentially all of the assets of the failed bank. The FDIC and Northbrook Bank and Trust Company entered into a loss-share transaction on $141.5 million of Lincoln Park Savings Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $48.4 million. Lincoln Park Savings Bank is the 55th FDIC-insured institution to fail in the nation this year, and the eighth in Illinois (and the fifth of seven Illinois banks closed on Friday).