Regulators close Founders Bank

To reopen Monday as The PrivateBank branches

Founders Bank branches in Minooka and Channahon are to reopen Monday in the wake of the state’s closing Thursday of the Founders Group of Worth.

A telephone call to Founders Bank in Minooka was answered with a recorded mssage noting the bank was closed by Illinois regulators on Thursday, July 2.

“Effective immediately, your accounts are now at the The PrivateBank (and Trust Company) of Chicago,” the recording continues.

“As planned, our branches are closed in observance of the Independence Day holiday. We will reopen with normal banking hours on Monday, July 6. In the meantime, you may continue to access your funds through ATMs, checks, and debit cards. Thank you for calling.”

Minooka-Channahon bank spokesman Mike Rittoff of Channahon could not be reached for comment by press time today. However, information available on the Federal Deposit Insurance Corporation Web site Friday morning, indicated all Founders Bank locations will reopen Monday as branches of The PrivateBank.

The announcement by the Illinois Department of Financial and Professional Regulation, Division of Banking, notes that no depositors lost any funds as a result of the receivership.

The announcement in-cludes an explanation by Jorge Solis, director of banking for the state.

“State-chartered banks, which comprised the Founders Group, were closed as they were operated in an unsafe and unsound manner, and did not have sufficient capital to provide adequate protection to the depositors,” Solis is quoted in the announcement.

“The board of directors of the banks were either unwilling or unable to infuse the capital needed to bring the banks to a safe and sound condition.”

Founders’ group is comprised of eight bank affiliates, six of which were placed in receivership. All had common ownership.

Five state-chartered banks in the group - John Warner Bank of Clinton, First State Bank of Winchester, First State Bank of Elizabeth, Rock River Bank of Oregon, and Founders Bank of Worth – were closed, as was the nationally-chartered First National Bank of Danville.

Not closed were Peotone Bank of Peotone, and First National Bank of Gilman.