The Bank of Elmwood in Racine on Friday became the first Wisconsin bank to be closed by regulators since the recession began.
All five branches of the Bank of Elmwood will reopen Saturday as branches of Oak Creek-based Tri City National Bank, according to the Wisconsin Department of Financial Insitutions, which appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. All customer deposit accounts at the Bank of Elmwood will be switched to Tri City National Bank.
The Bank of Elmwood had been directed by regulators to restore its capital to required levels or sell itself to another bank.
Regulators have now closed down more than 100 banks since the recession began.
Kurt Bauer, president and chief executive officer of the Wisconsin Bankers Association (WBA) issued the following statement about the closure:
"As with other business closures, bank failures are an unfortunate, but normal part of the economic cycle. The most important thing for the public to remember is that insured deposits are safe and that Wisconsin banks as a whole are stronger than peers nationally. Bank depositors are protected from losses up to $250,000, and in many instances in excess of that amount, by the Federal Deposit Insurance Corporation (FDIC). Underscoring this point is the fact that Bank of Elmwood customers will have uninterrupted access to their deposits via existing branch locations or by writing checks or using their ATM/debit cards. The five branches of Bank of Elmwood will reopen on Saturday as branches of Tri City National Bank, Oak Creek. No one has ever lost a penny of FDIC insured deposits in the 76-year history of the agency. While the state is clearly not immune to the effects of the economic downturn, Wisconsin banks continue to outperform their peers nationally in many key categories, including profitability, lending, deposit growth and liquidity. Wisconsin banks also report fewer problem loans than U.S. banks as a whole."
Regulators shut down the Bank of Elmwood
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