August 6, 2010 – 7:05 pm

The honor of being the 109th FDIC insured institution to fail in 2010 goes to Ravenswood Bank, Chicago, Illinois. The agency estimates that the cost to the Deposit Insurance Fund (DIF) of $68.1 million.

Ravenswood Bank, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking, 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 and Trust Company, Northbrook, Illinois, to assume all of the deposits of Ravenswood Bank.

The two branches of Ravenswood Bank will reopen on Saturday as branches of Northbrook Bank and Trust Company. Depositors of Ravenswood Bank will automatically become depositors of Northbrook Bank and 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. Customers of Ravenswood Bank should continue to use their existing branch until they receive notice from Northbrook Bank and Trust Company that it has completed systems changes to allow other Northbrook Bank and Trust Company branches to process their accounts as well.

This evening and over the weekend, depositors of Ravenswood Bank 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 June 30, 2010, Ravenswood Bank had approximately $264.6 million in total assets and $269.5 million in total deposits. Northbrook Bank and Trust Company will pay the FDIC a premium of 0.90 percent on the non-brokered deposits of Ravenswood Bank. In addition to assuming the non-brokered deposits of the failed bank, Northbrook Bank and Trust Company agreed to purchase essentially all of the assets.

The FDIC and Northbrook Bank and Trust Company entered into a loss-share transaction on $161.3 million of Ravenswood Bank’s assets. Northbrook Bank and 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:

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-430-7974. 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.

If you should have any further questions, please do not hesitate to visit the FDIC’s website for Ravenswood Bank.