PLAINFIELD, Ind., Nov. 1, 2006 (PRIMEZONE) -- Lincoln Bancorp (Nasdaq:LNCB), the holding company of Lincoln Bank, with its headquarters in Plainfield, has announced that effective at the close of business on Tuesday, October 31, 2006, it has officially become a bank holding company and now falls under the jurisdiction of the Board of Governors of the Federal Reserve System, completing a conversion that has been planned for two years.
Its sole subsidiary, Lincoln Bank, which also has its headquarters in Plainfield, is now a state-chartered commercial bank and will be regulated by the Indiana Department of Financial Institutions and the Federal Deposit Insurance Corporation.
Lincoln Bank has always provided both retail and commercial banking services, but was better known for their retail services. The change to a commercial bank assists in articulating all the services Lincoln Bank provides. Besides a different affiliation, Lincoln Bank customers will not be affected by the new designation nor will it affect the deposit insurance provided by the FDIC.
"This change will give us the flexibility to accelerate the transition we have been making for some time now to commercial banking and relieve some of the regulatory limitations involved with the thrift charter," said President and CEO Jerry R. Engle. "The Bank continues to have complete commitment to retail banking, but this change will give us additional options to pursue commercial business."
Lincoln Bank began back in 1884 as Ladoga Federal Savings and Loan Association. After several mergers and acquisitions it became Lincoln Bank in 2003. Currently the bank has locations in Brown, Clinton, Hamilton, Hendricks, Johnson, Montgomery and Morgan counties.