Inland Bank
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Inland Bank & Trust was an
Oak Brook, Illinois Oak Brook is a village (Illinois), village in DuPage County, Illinois, with a very small portion in Cook County, Illinois, Cook County. The population was 8,163 at the 2020 United States census, 2020 census. A suburb of Chicago, it contains th ...
finance company controlled by Inland Real Estate Group until mid-2023. With all of its ten
branches A branch, also called a ramus in botany, is a stem that grows off from another stem, or when structures like veins in leaves are divided into smaller veins. History and etymology In Old English, there are numerous words for branch, includi ...
located in Chicago's western suburbs, the bank invested approximately one-third of its assets in commercial real estate. As part of the $129 million merger between Inland Bancorp and Byline Bancorp in July 2023, Inland Bank & Trust merged its operations into Byline Bank.


History

Founded in 1977 as Bank of Villa Park, the banking institution had its name changed twice until 2008: Bank of Illinois in DuPage (May 1987) and AmeriMark Bank (July 1997). In May 2008, Inland Bancorp acquired AmeriMark Bank and its name was changed to Inland Bank & Trust. In November 2012, the
FDIC The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...
and Illinois Division of Banking reversed a unique arrangement that let the bank appear profitable during the
Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
by shifting responsibility for losses to an undisclosed sister company owned by Goodwin. Inland Bank submitted bids to the FDIC for multiple banks while the arrangement enabled it to hide losses, and won a 2011 bid for First Choice Bank in
Geneva, Illinois Geneva is a city in and the county seat of Kane County, Illinois, United States. It is located in the far western side of the Chicago suburbs. Per the 2020 United States Census, 2020 census, the population was 21,393. Geneva is part of a Tri-Ci ...
. Prior to the regulatory intervention, Inland Bank had tripled in size in five years by acquiring First Choice Bank and banks in
Countryside, Illinois Countryside is a city in Cook County, Illinois, United States. Per the 2020 census, the population was 6,420. History The land where Countryside sits was originally inhabited by the Potawatomi Indians and later by early American pioneers in t ...
and
Lake Zurich, Illinois Lake Zurich is a village in Lake County, Illinois, United States, a northwest suburb of Chicago. Per the 2020 census, the population was 19,759. The village is named after a body of water named "Lake Zurich," which is completely located insi ...
. An Oak Park-based consultant to community banks at the time told ''Crain’s Chicago Business'' that “You don't want outliers with regard to financial institutions. This was an outlier. Regulators just want to know if you're healthy or you're not healthy. . . . Why should (Inland) be treated differently than the other $1 billion-plus banks in the same situation?” The consent order ending the loss-share agreement also led to Goodwin and other shareholders injecting $30 million in new equity into the bank. Regulators lifted the order in July 2013. It received a total of $731,404 in financial awards from the
United States Department of the Treasury The Department of the Treasury (USDT) is the Treasury, national treasury and finance department of the federal government of the United States. It is one of 15 current United States federal executive departments, U.S. government departments. ...
’s Bank Enterprise Award Program (“BEA”) from 2009 to 2013 while the loss-share agreement and then the consent order were in effect. The Treasury Department has faced criticism concerning whether it was appropriate to reward Inland Bank while it was hiding loses in sister companies and whether Inland Bank should have received a reward for supporting Pan American Bank while both banks were majority-owned by Goodwin. Fifteen months after launching digital, card-linked coupons, the bank announced in September 2014 that it had expansion plans with the goal of becoming a
public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...
via an
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
. In October, the Illinois Securities Department issued a subpoena regarding Inland Bank’s transactions with Inland American Real Estate Investment Trust (now InvenTrust Properties), with the possibility that investors in InvenTrust covered losses incurred by the bank as a result of a usual loss-sharing agreement. In February 2017, Thomas Marvinac was appointed executive vice president and chief credit officer. In March, the bank was sued for racial discrimination regarding a loan modification request; however, the court ruled in favor of the bank via
summary judgment In law, a summary judgment, also referred to as judgment as a matter of law or summary disposition, is a Judgment (law), judgment entered by a court for one party and against another party summarily, i.e., without a full Trial (law), trial. Summa ...
.


College Savings Bank

In 2015, the bank cancelled the acquisition of College Savings Bank of
Princeton, New Jersey The Municipality of Princeton is a Borough (New Jersey), borough in Mercer County, New Jersey, United States. It was established on January 1, 2013, through the consolidation of the Borough of Princeton, New Jersey, Borough of Princeton and Pri ...
after the
Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation (FDIC) is a State-owned enterprises of the United States, United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was cr ...
objected to the transaction. The owners of College Savings account filed a $12 million lawsuit against Inland, claiming it withheld information. In 2019, the courts ruled in favor of Inland, in part, via
summary judgment In law, a summary judgment, also referred to as judgment as a matter of law or summary disposition, is a Judgment (law), judgment entered by a court for one party and against another party summarily, i.e., without a full Trial (law), trial. Summa ...
.


References

{{Reflist


External links


Official website
Banks based in Illinois Oak Brook, Illinois Privately held companies based in Illinois American companies disestablished in 2023 2023 mergers and acquisitions