After a July free of bank failures, August is proving to be a busier month for the FDIC. Bank of Wausau in Wisconsin became the second bank failure for August and the 18th bank failure for the year. As a comparison, at this time last year there had been 40 bank failures for the year.
Today’s bank failure was typical in that the failed bank was a small community bank. It only had one branch with total assets of $43.6 million.
It was also typical in that the FDIC was able to find another bank to assume all deposits. The FDIC had the following message in its Q&As for the bank:
No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to Nicolet National Bank.
CD customers of the failed bank will have to wait to see what happens with their rates. The acquiring bank may reduce rates on the existing CDs. However, customers will be allowed to make a penalty-free early withdrawal.
No credit unions failed this week. The total number of credit union liquidations for this year remains at 12.
Below is the summary of today’s bank failure:
18th Bank Failure of 2013 (2nd in Wisconsin)
- Closed Bank: Bank of Wausau, Wausau, WI
- FDIC Press Release
- Size: 1 branch, $43.6 million in assets and $40.7 million in deposits
- Acquiring Bank: Nicolet National Bank, Green Bay, WI
- Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Nicolet National Bank (FDIC Q&A)
- Rate Changes: Bank of Wausau's rates will be reviewed by Nicolet National Bank and may be lowered (FDIC Q&A)
- Estimated Cost to Deposit Insurance Fund: $13.5 million
- Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 217.82% at DepositAccounts.com (see financial rating note)
Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at DepositAccounts.com & Bankrate.com, Texas Ratios over 100% is considered at risk. Ratings at DepositAccounts.com, BauerFinancial and Bankrate.com are based on March 31, 2013 data.
- FDIC list of failed banks
- Texas Ratios for banks and credit unions
- Latest FDIC info on deposit insurance
- My bank failure review posts
- Review of the 2012 bank and credit union failures
- Review of the 2011 bank and credit union failures
- Review of the 2010 bank and credit union failures
- 10 Lessons from the 2008 bank failures