The Wisconsin Department of Financial Institutions’ (DFI) Division of Banking announced Friday that it has closed the Bank of Elmwood in Racine. Immediately after closing the Bank, DFI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the Bank of Elmwood. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Tri City National Bank, Oak Creek, to assume all of the deposits of the Bank of Elmwood.
“Wisconsin is not immune from the national economic downturn and as the economy improves we are optimistic that Wisconsin’s banks will also see an improvement,” said Secretary of the Department of Financial Institutions, Lorrie Keating Heinemann.
“As with other business closures, bank failures are an unfortunate, but normal part of the economic cycle,” said Kurt Bauer, president/CEO of the Wisconsin Bankers Association. “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 of Elmwood’s five branches will reopen on Saturday as branches of Tri City National Bank. Depositors of the Bank of Elmwood will automatically become depositors of Tri City National Bank. Deposits will continue to be insured by the FDIC. Customers should continue to use their existing branch until Tri City National Bank can fully integrate the deposit records of the Bank of Elmwood. This evening and over the weekend, depositors of the Bank of Elmwood can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.