FDIC: Deposits in failed Geneva bank are safe

It's really just a name change.

That's what customers of First Choice Bank in Geneva — now a branch of Inland Bank of Oak Brook — were being assured Saturday after that bank's closing was mandated Friday by state and federal agencies.

“The biggest thing is everyone's money is safe,” said Raymond Rudnicki, a senior ombudsman specialist with the Federal Deposit Insurance Corporation who was at the bank Saturday answering customer questions.

First Choice Bank was closed Friday by the Illinois Department of Financial and Professional Regulation's Division of Banking. The FDIC, which was appointed as receiver of the bank's assets, made an agreement under which Inland Bank will assume First Choice's deposits, and therefore its customers.

The bank's Geneva location at 1900 W. State St. already displayed Inland Bank signs when it opened for normal business hours Saturday, but some customers arriving were unsure if it was open.

Walter Stackman of Geneva visited the bank late Saturday morning to check on the security of his assets.

“A friend said I was in great jeopardy and I might lose everything in my safety deposit box, which is not true,” he said after a conversation with an FDIC representative.

When Stackman, of Geneva, heard news of the bank's failure, he originally wasn't too worried — until his friend voiced concerns about the safety deposit box.

“I wasn't at all alarmed,” he said. “I wasn't happy about it.”

Inland Bank Chairman and CEO Howard Jaffe said there will be no interruptions in any normal bank services.

“The whole idea is to make it as seamless a transition to the customers as we can,” Jaffe said. “So it's really business as usual for everyone — for the staff and for the client base.”

People with First Choice Bank accounts can continue writing checks, using ATMs and debit cards. Those with loans through the bank should continue making payments as usual, according to a frequently asked question list from the FDIC.

“Inland assumed all the deposits of First Choice Bank; they continue to be insured by the FDIC,” Jaffe said. “All the customers have absolutely nothing to worry about in regard to the deposits they have in the bank.”

As of June 30, First Choice Bank had about $141 million in total assets and $137.2 million in total deposits.

But the bank on Friday became the seventh in the state and the 68th in the nation to fail this year.

“The regulators felt the bank wasn't properly capitalized,” Jaffe said. “In general, it's probably more to do with the quality of the loan portfolio, where they had write-downs ... that depleted the capital of the bank.”

Bank customers with questions can call the FDIC toll-free at (800) 517-8236.