Yesterday, Bank of Elmwood, headquartered in Racine, Wisconsin, was closed by the Wisconsin Department of Financial Institutions, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Tri City National Bank, headquartered in Oak Creek, Wisconsin to assume all the deposits of Bank of Elmwood. Tri City National Bank did not pay a premium for the deposits.
As of September 30, 2009, Bank of Elmwood had total assets of $327.4 million and total deposits of approximately $273.2 million. Tri City National Bank also agreed to purchase essentially all of the assets of the failed bank.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $101.1 million. Tri City National Bank is the 104th bank to fail in the nation this year and the first in Wisconsin.