Regulators shut down Illinois bank in 37th failure of the year

WASHINGTON -- Regulators have shut down Bank of Lincolnwood, a small bank in Illinois, marking the 37th failure this year of a federally insured bank.

More are expected to succumb amid the pressures of the weak economy and mounting loan defaults.

The Federal Deposit Insurance Corp. was appointed receiver of the failed bank, based in Lincolnwood, Ill., which had about $214 million in assets and $202 million in deposits as of May 26.

All of Bank of Lincolnwood's deposits will be assumed by Republic Bank of Chicago, based in Oak Brook, Ill., which also agreed to buy about $162 million of the bank's assets; the FDIC will retain the rest for eventual sale.

Bank of Lincolnwood's two offices will reopen on Saturday as branches of Republic Bank of Chicago.