Today’s action ensures all depositors are protected with
no consumer losses in fourth Illinois bank failure of 2009
CHICAGO, May 22nd – The Illinois Department of Financial and Professional Regulation’s (IDFPR) Division of Banking today announced that it has taken possession and control of Strategic Capital Bank, Champaign, Illinois for the purpose of receivership and liquidation. The bank’s main office was in Champaign and they operated a loan production office in Oak Brook. The Division of Banking appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the bank under the provisions of the Illinois Banking Act.
On May 26, 2009, the main banking office and branches of Strategic Capital Bank will re-open as Midland States Bank, Effingham, and all Strategic Capital Bank customers will automatically become depositors of Midland States Bank. All deposits with Strategic Capital Bank will be automatically transferred to Midland States Bank and consumers will not lose any funds.
As of December 31, 2008, the Strategic Capital Bank had total assets of $598 million. The bank also owned Strategic Capital Trust Company, also located in Champaign. The trust company had total trust assets of $312 million.
“While financial institutions around the country work to serve the needs of personal and commercial customers and clients, we remain confident that state-chartered commercial banks will be less affected by the economic volatility than the investment banks and financial holding companies that have generated media headlines,” said Michael T. McRaith, IDFPR Acting Secretary. “On behalf of Illinois consumers, state financial regulators will continue our proactive financial regulation to ensure deposits and assets remain protected and that consumers always remain priority number one.”
“Strategic Capital Bank was operating in an unsafe and unsound manner, and the bank’s board of directors was either unable or unwilling to infuse the additional capital needed to keep the bank open,” said Jorge Solis, Director of Banking. “We are pleased that Midland States Bank will continue to provide banking services to the former customers of and communities served by Strategic Capital Bank.”
As part of the receivership process, the FDIC and the Division of Banking approved Midland States Bank, Effingham, to purchase selected assets and liabilities of Strategic Capital Bank. Midland States Bank had assets of $438 million as of year end and operated 14 banking offices in Illinois and two in Missouri.
Customers with questions about how deposit insurance works or who would like more information about the failure can visit the FDIC’s web site at www.fdic.gov or call the FDIC toll-free at 1-877-ASK FDIC.