Bench mark Bank freezes credit lines

AURORA - Bench mark Bank sent about 300 letters to customers this week that said it has been seeking recapitalization and will suspend advances on all existing credit lines, including new money advances on existing home equity loans and overdraft lines of credit.

"Due to this suspension, any request for credit advances will need to be declined, and any checks written against previously approved credit lines will need to be declined or returned," the letter said.

Bank President John Medernach said the bank has been seeking $8 million in additional capital, which is expected sometime during the fourth quarter, which starts in October.

In August, the bank's shareholders voted to issue and sell 10.4 million shares of common stock to a local group of investors. Medernach declined further details, citing confidentiality agreements.

The 110-year-old bank has five locations, including Aurora and St. Charles.