Last night Ravenswood Bank, 2300 W. Lawrence Ave., was taken over by the Illinois Department of Financial and Professional Regulation and put into the receivership of the Federal Deposit Insurance Corporation (FDIC). Ravenswood’s doors opened again this morning as branches of Northbrook Bank and Trust Company, a division of WinTrust Financial Corporation.
Ravenswood Bank is the thirteenth bank in Illinois to fail and the third in Center Square. Corus Bank, which had a branch on Lawrence and Western, closed on September 11, 2009, and became part of MB Financial. Lincoln Park Savings Bank was closed on April 23, 2010, and is also now part of Northbrook Bank and Trust Company.
Ravenswood Bank’s closure could be a tough blow for the Lincoln Square business community. Vincent Savarino, a Ravenswood Bank Vice President, was a longtime board member of the Northcenter Chamber of Commerce and an active booster of the community.
Ravenswood Bank was “very involved in the community,” said Northcenter Chamber of Commerce Executive Director Garrett FitzGerald. “When we started Special Service Area #38, we took out an unsecured loan with Ravenswood Bank at great terms to do a study for the SSA. Nobody else would make that loan, because we had no assets, but they went ahead and gave us the line of credit.”
As a business model, Northbrook Bank and Trust Company tends to keep the brand name of existing banks it takes over. “Lincoln Park Savings Bank pretty much kept their staff around,” said FitzGerald. “That’s important to us.”
Thanks to alert reader, Michael Morowitz, for tipping us off to the bank closure last night.