We are a state-chartered bank from outside of Illinois that operates three branches in Illinois. We need to temporarily relocate one of the Illinois branches to a property approximately five hundred feet away so that we can complete renovations in the original branch. We are aware that we will need to seek approval from the FDIC and our home state regulator to do this, but are there any Illinois notice requirements that we need to fulfill?

Yes, we recommend sending an informal notice to the Illinois Department of Financial and Professional Regulation (IDFPR) based on guidance we received from an IDFPR attorney.

Under the Illinois Banking Act, an out-of-state bank lawfully operating in Illinois must notify the IDFPR of its intent to establish an additional branch in Illinois within thirty days after approval of its primary federal regulator. However, this requirement does not mention temporary relocations of existing branches.

We reached out to an IDFPR attorney, who acknowledged that the Illinois Banking Act does not specifically address whether an out-of-state bank is required to notify the IDFPR before temporarily relocating an existing Illinois branch. Nevertheless, the attorney stated that the IDFPR would like to receive notice in such a situation.

The IDFPR does not have formal procedures related to temporary relocations, so the IDFPR attorney advised that the notice should at least identify the bank and the branch being relocated and include pertinent details, such as where the branch will be relocated and for how long. The notice should be emailed to [email protected].

For resources related to our guidance, please see:

Illinois Banking Act, 205 ILCS 5/21.1(e) (“An out-of-state bank shall provide written notice to the Commissioner of its intent to establish an additional branch or branches in this State within 30 days after approval of the appropriate federal banking agency to establish the branch or branches. The notice form shall be specified by the Commissioner and may include any of the information required for a similar notice by a State bank. Receipt by the Commissioner of notice of the out-of-state bank’s intent to establish such additional branch or branches in this State from the out-of-state bank’s chartering authority shall satisfy the requirements of this subsection (e).”)

Illinois Banking Act, 205 ILCS 5/21.4(d) (“After such out-of-state bank or national bank lawfully establishes a branch in this State pursuant to the provisions of this Section, such out-of-state bank or national bank may establish and maintain additional branches in this State to the same extent as a State bank. An out-of-state bank shall provide written notice to the Commissioner of its intent to establish an additional branch or branches in this State within 30 days after receiving approval from the appropriate federal banking agency to establish the branch or branches. The form of the notice shall be specified by the Commissioner.”)

IDFPR Letter Applications (“Notice of Intent to Establish Additional Branches in IL – Out of State Banks. Pursuant to Section 21.1(e) of the Illinois Banking Act, an out of state bank seeking to establish additional branches in this State shall submit a letter indicating the address of the new branch and the date the branch is expected to begin operations, if such date is known. The letter must be mailed within 30 days after the appropriate federal banking agency approves such branch. If the Department receives notice of the establishment of the branch from the out of state bank’s chartering authority, the out of state bank is not required to send a notice.”)

Federal Deposit Insurance Act, 12 USC 1828(d)(1) (“No State nonmember insured bank shall establish and operate any new domestic branch unless it shall have the prior written consent of the Corporation, and no State nonmember insured bank shall move its main office or any such branch from one location to another without such consent. No foreign bank may move any insured branch from one location to another without such consent. The factors to be considered in granting or withholding the consent of the Corporation under this subsection shall be those enumerated in section 1816 of this title.”)