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Northbrook Bank & Trust Company, Northbrook, Illinois, Assumes All of the Deposits of First Chicago Bank & Trust, Chicago, Illinois
First Chicago Bank & Trust, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northbrook Bank & Trust Company, Northbrook, Illinois, to assume all of the deposits of First Chicago Bank & Trust.
The seven branches of First Chicago Bank & Trust will reopen during normal business hours as branches of Northbrook Bank & Trust Company. Depositors of First Chicago Bank & Trust will automatically become depositors of Northbrook Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First Chicago Bank & Trust should continue to use their existing branch until they receive notice from Northbrook Bank & Trust Company that it has completed systems changes to allow other Northbrook Bank & Trust Company branches to process their accounts as well.
This evening and over the weekend, depositors of First Chicago Bank & Trust can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 31, 2011, First Chicago Bank & Trust had approximately $959.3 million in total assets and $887.5 million in total deposits. Northbrook Bank & Trust Company will pay the FDIC a premium of 0.50 percent to assume all of the deposits of First Chicago Bank & Trust. In addition to assuming all of the deposits of the failed bank, Northbrook Bank & Trust Company agreed to purchase approximately $880.7 million of the failed bank's assets.
The FDIC and Northbrook Bank & Trust Company entered into a loss-share transaction on $699.8 million of First Chicago Bank & Trust's assets. Northbrook Bank & Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers with questions about today's transaction should call the FDIC toll-free at 1-800-517-1839. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/firstchicago.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $284.3 million. Compared to other alternatives, Northbrook Bank & Trust Company's acquisition was the least costly resolution for the FDIC's DIF. First Chicago Bank & Trust is the 49th FDIC-insured institution to fail in the nation this year, and the fifth in Illinois. The last FDIC-insured institution closed in the state was Western Springs National Bank and Trust, Western Springs, on April 8, 2011.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,575 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-117-2011
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