GreenChoice Bank, fsb, Chicago, IL, Closed by Regulators

greenchoiceGreenChoice Bank, fsb, Chicago, Illinois, a small community bank, was closed today by the Office of the Comptroller.  The FDIC, appointed as receiver, sold the failed bank to Providence Bank, LLC, South Holland, Illinois, which will assume all deposits of GreenChoice Bank.

GreenChoice Bank had been around for over 100 years, having been founded in 1910.  In 2010 GreenChoice acquired Family Federal Savings of Illinois whose history also extended back over 100 years.

As the name implies GreenChoice was totally committed to becoming a “responsible green business” by lowering the bank’s impact on the environment.  According to the Bank’s website, GreenChoice devoted considerable resources in trying to convert the Bank’s business properties into sustainably-built buildings that were also healthy to work in.

We invested most of 2010 re-engineering the business to GreenChoice’s standards. This involved retrofitting its two branch locations and applying for LEED certification, introducing online and other electronic banking capabilities and launching a cultural change to incorporate sustainability initiatives throughout the business.

We strive to create a small physical footprint to reduce our environmental impact, instead using technology and service to bring the bank to you.

Our Green Exchange flagship location is seeking LEED Platinum certification.

We retrofitted our two branch locations in Lockport and Cicero for LEED certification.

While striving to improve the local environment the Bank’s loan customers began in default in droves and increasing losses eventually forced regulators to close down GreenChoice Bank.

GreenChoice Bank had $72.9 million in total assets as of March 31, 2014 and $71.0 million in total deposits.  Providence Bank, in addition to assuming all deposits also agreed to purchase $67.7 million of GreenChoice’s assets with the balance to be retained by the FDIC for later disposition.

All three branches of GreenChoice will reopen as branches of Providence Bank and customers of the failed bank will continue to have full deposit insurance coverage up to the applicable limits.  Over the weekend depositors of GreenChoice will continue to have access to their funds through the use of ATMs, checking accounts, and debit cards.

The loss to the FDIC deposit insurance fund for the failure of GreenChoice is $14.2 million.  GreenChoice becomes the 14th FDIC insured bank to fail during 2014 and the fourth in Illinois.

Comments

  1. This a sad day for many of the fine people whom worked at GCB. This was a good bank that inherited many bad loans when they acquired family federal. There will be many rumors in days to follow, but having worked there, I can assure you that the team there was top notch and very committed. I’m sorry to see this happen.

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