Second Federal Savings and Loan Association of Chicago, Chicago, Illinois, is the 38th FDIC-insured institution to fail in the nation this year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $76.9 million.
Second Federal Savings and Loan Association of Chicago, Chicago, Illinois, was closed today by the Office of the Comptroller of the Currency (OCC), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Hinsdale Bank & Trust Company, Hinsdale, Illinois, to assume all of the deposits of Second Federal Savings and Loan Association of Chicago.
The three branches of Second Federal Savings and Loan Association of Chicago will reopen on Saturday as branches of Hinsdale Bank & Trust Company. Depositors of the failed bank will automatically become depositors of Hinsdale Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage up to applicable limits.
Over the weekend, customers of Second Federal Savings and Loan Association of Chicago can access their insured deposits by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed.
As of March 31, 2012, Second Federal Savings and Loan Association of Chicago had approximately $199.1 million in total assets and $175.9 million in total deposits. Hinsdale Bank & Trust Bank will pay the FDIC a premium of $100,000 to assume all of the deposits of the failed bank. In addition to assuming all of the deposits, Hinsdale Bank & Trust Company agreed to purchase approximately $14.2 million in assets, comprised mainly of cash. All loans, including consumer and mortgage, will be retained by the FDIC for later disposition. Loan customers should continue to make their payments as usual.
Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-815-0286. 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 10 a.m. to 6:00 p.m., CDT; on Monday from 8 a.m. to 8 p.m., CDT; and thereafter from 9:00 a.m. to 5:00 p.m., CDT.
If you should have ant further questions please do not hesitate to visit the FDIC web page for Second Federal Savings and Loan Association of Chicago.