The Wisconsin Department of Financial Institutions closed the $67.1 million-asset North Milwaukee State Bank on Friday.
As the receiver of the failed bank – the first of 2016 – the Federal Deposit Insurance Corp. entered into an agreement with a unit of First Citizens BancShares in Raleigh, N.C., to assume North Milwaukee's operations, which include two branches. First Citizens agreed to assume all of North Milwaukee's $61.5 million in deposits and essentially all of the failed bank's assets. The bank will reopen during normal business hours under the North Milwaukee brand, a division of the $31.4 billion-asset First Citizens.
The failure is estimated to cost the Deposit Insurance Fund $9.6 million. The last institution closed in Wisconsin was Bank of Wausau in August 2013.
First Citizens, meanwhile, continues to build an unusual footprint that often includes buying failed banks. The $31 billion-asset company has completed eight failed-bank deals since the financial crisis, adding franchises in far-flung states such as California, Colorado and Washington.
"We've grown both organically and through select mergers and acquisitions with other banks," Frank Holding Jr., First Citizens' chairman and chief executive, said in a press release Friday. "Our strength and soundness have allowed us to enter into these types of transactions. We assure customers of North Milwaukee State Bank that their deposits are safe, sound and readily accessible, and they can continue to bank with no disruption in service."