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Bank of Lincolnwood Customers
Frequently Asked Questions
What has occurred here? How did Republic Bank of Chicago (RB) come to acquire Bank of Lincolnwood (BOL)?
RB has agreed to assume from the FDIC all deposits and to purchase most loans of BOL. As part of a federally regulated process, RB was determined to be the winning bidder among several other banks that sought to acquire BOL. Effective June 6, 2009, branches previously owned and operated by BOL, headquartered in Lincolnwood, Illinois have reopened during normal business hours as part of RB.
Who is Republic Bank of Chicago (RB)?
RB is a strong community bank that has been serving greater Chicagoland for over 40 years. We are a family owned institution that is recognized as being “well capitalized” by regulatory standards with capital over $120 million. With the addition of the 2 Lincolnwood locations, RB will have a banking center network of 14 facilities. Our corporate headquarters is located in Oak Brook, IL. RB is committed to providing outstanding customer service to all of our retail and commercial customers.
What happened?
BOL in Lincolnwood, with its two Lincolnwood locations closed Friday, June 5, 2009, by the Illinois Department of Financial and Professional Regulation – Division of Banking and the Federal Deposit Insurance Corporation (FDIC) was the appointed receiver. The FDIC transferred all deposits and assets of BOL to RB. According to regulatory policy, there is no advance notice given to the public.
How does this failure affect me?
The effect of the failure on the average depositor of BOL will be minimal, as the FDIC transferred all deposits and certain loans to RB. If you held an account at the Bank of Lincolnwood, you now have an account at RB.
The former BOL locations have reopened as banking centers of RB. Please note: If you have a BOL account, you will not be able to transact business at existing RB Banking Centers until you are notified that the system integration has taken place. In turn, existing customers of RB will not be able to transact business at these former BOL branches until we undergo the system integration.
Are my deposits insured by the FDIC?
The FDIC Standard Maximum Deposit Insurance Amount (SMDIA) for deposits has been increased to $250,000 per depositor per insured financial institution through December 31, 2013.
In addition, RB is participating in the FDIC’s Temporary Liquidity Guarantee Program to provide an unlimited FDIC guarantee on funds deposited in non interest-bearing checking accounts through December 31, 2009. This will include former BOL customers.
If you have deposits at both BOL and RB: Deposits at the two banks continue to be insured separately by the FDIC for six months after the bank closing date, up to applicable limits.
You can learn more at http://www.fdic.gov/index.html
So, what happens now?
The first order of business is to welcome all BOL customers to RB and to assure them that their insured deposits are safe, sound and readily accessible. All deposits have been automatically transitioned to RB. We are excited to build a relationship with you, our customer, and the BOL Banking Center employees.
May I conduct my banking at any RB location?
At this time, please continue to conduct your banking transactions at the former BOL locations. You will be notified when system integration has been completed. Once this occurs, you will have access to all 14 RB Banking Centers.
Are my deposits safe?
Yes. Customers of BOL and RB should continue banking as usual, and feel confident that their deposits are secure.
I have CDs with BOL and RB. How will this merger affect me?
You do not need to make changes at this time. CDs held at the former BOL will be separately insured by the FDIC until maturity.
Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
Republic Bank of Chicago will be reviewing rates and will notify you.
You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.
When can I use RB Banking Centers and ATMs?
Once BOL and RB Banking Centers are system integrated, we look forward to offering our customers access to RB’s 14 banking centers and over 32,000 surcharge free ATMs nationwide.
For now, you should continue to bank as usual at former BOL branches and ATMs. We will keep you informed with updates regarding access to additional Banking Centers and ATMs.
What will happen to my accounts and my local banking office?
It’s business as usual. You should continue to use your current deposit, loan, and/or investment accounts at your regular banking office as normal. Your ATM/Debit cards and checks will be available for your continued use. We do not expect many changes in the months ahead. You will receive personal notification in advance if any changes are to occur.
All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirements accounts have been transferred to Republic Bank of Chicago, Oak Brook, IL, regardless of the dollar amount. Your deposits will be available for business as usual at your former Bank of Lincolnwood branches starting on Saturday, June 6, 2009 No one lost any money on deposit in Bank of Lincolnwood.
If you had an account with Bank of Lincolnwood, you now have an account with Republic Bank of Chicago.
Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.
Will my account number change?
For now, your account numbers will remain the same. Upon the system integration, we will be making every effort to keep your account numbers the same. You will be notified well in advance of any change to your accounts or account numbers.
Will my direct deposits, automated payments, and transfers remain the same?
Yes. These services all continue for you without interruption. If you need to change anything in the future, please contact your former BOL branch location to make those arrangements.
Can I continue to write checks or use my ATM/Debit card?
Yes. You will be able to continue using your personal checks at this time, and your ATM/Debit card will continue to work.
Will I incur an early withdrawal penalty if I close my CD before maturity?
No. You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.
How will I get my final account statement(s) from BOL?
You will receive your account statements at the same time you have received them in the past.
What will happen to the checks which have not cleared my account?
Checks that were drawn on BOL that did not clear before the institution closed will be honored up to your available balance. You can continue to use your existing checks.
Can funds be wired to me?
Yes. Please contact your former BOL branch location to obtain information regarding your wire request.
Will my automatic payments through Bill Pay continue?
Yes, automatic payments will continue as usual. Additionally, you may continue to access Internet Banking and perform allowed transactions.
Where do I send my credit card, mortgage, and loan payments?
There is no change at this time. Please continue to make your credit card, mortgage, and loan payments as usual.
What happened if I had a loan in process that had not closed or a line of credit not fully funded?
Please contact your loan representative you have worked with.
Will my ACH transaction still occur on its assigned date?
Yes. You should not experience any disruption in this service.
I have a loan currently in process. How is my loan impacted?
Please contact your loan officer directly.
What if I need information regarding my account during the time BOL was in business?
Please contact a representative of your former BOL Banking Center location to obtain a copy of any records you may need or visit your branch.
How can I access the contents of my safe deposit box?
It is business as usual. You may go to the BOL main office and access your safe deposit box or make an appointment by calling your Personal Banker.
Will I be able to transfer money between my former BOL and RB accounts online or view all of my accounts at one website?
At this time, you will not be able to transfer funds between institutions online or view your accounts combined on one website. Please continue to use the individual online banking websites with the same usernames and existing passwords. We will notify you when BOL and RB integrate their computer systems.
I am a deposit broker or have brokered deposits. What do I do?
The total of all deposit accounts, including brokered deposits, have been assumed by Republic Bank of Chicago.
I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250, 000. Are all funds insured?
The accounts transferred to Republic Bank of Chicago will be separately insured for at least six months after the bank closing date. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.
CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.
CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.
If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.
I represent a TV/Newspaper/Radio and would like some information.
Contact: LaJuan Williams-Dickerson
202-898-3876 (office) lwilliams-dickerson@fdic.gov
Why do all deposits, insured or not, pass in some transactions but not in others?
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.
Is the money people have deposited in BOL safe?
Yes. In terms of the ‘safety’ of BOL deposits, we consider this development very positive for BOL customers, given RB’s fiscal strength. RB is currently classified by the regulators as “well capitalized,” the highest possible designation. All BOL deposits remain safe and sound, just as before, insured by the Federal Deposit Insurance Corporation within all legal limits.
Click here to read the details on RB’s Statement of Condition.
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