June 6 - Banks of Wisconsin, Kenosha, Wis., has been closed by the Wisconsin Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with North Shore Bank, FSB, Brookfield, Wis., to assume all of the deposits of Banks of Wisconsin.
As of March 31, 2012, Banks of Wisconsin had approximately $134 million in total assets and $127.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, North Shore Bank, FSB agreed to purchase approximately $97.4 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $26.3 million. Compared to other alternatives, North Shore Bank, FSB's acquisition was the least costly resolution for the FDIC's DIF. Banks of Wisconsin is the 14th FDIC-insured institution to fail in the nation this year, and the first in Wisconsin. The last FDIC-insured institution closed in the state was Legacy Bank, Milwaukee, on March 11, 2011.