Bank of Wausau, a small community bank serving central Wisconsin, was shut down by state financial regulators who appointed the FDIC as receiver. To protect depositors, the FDIC sold the failed bank to Nicolet National Bank, Green Bay, Wisconsin, which will assume all deposits.
All depositors of Bank of Wausau will automatically become depositors of Nicolet National Bank with uninterrupted deposit insurance coverage up to the applicable limits. The sole branch of Bank of Wausau will reopen on Saturday as a branch of Nicolet National Bank. Over the weekend, depositors of the failed bank will have access to their money through the use of debit cards, checks and ATMs.
According to Bank of Wausau’s website, the bank focused on making business loans in the local community and promoted itself as a “strong bank.”
New businesses need cash management and adequate financing throughout the year and they need to be able to depend on the community banking partnership for their added expertise.
In many business ventures the payments for services are received after the job is completed. Cash flow is a critical component of success. That is where the local bank comes in. Through solid banking principles we are able to stand alongside our customers who are working hard to maintain thriving businesses.
Bank of Wausau has a long-term view of our relationships, not just 30, 60, or 90 days. With great planning and early identification, we are often able to assist our clients in steering their business in a positive, growth-centered direction. In leaner times you need a strong bank with which to deal. Bank of Wausau has a commitment to strong positive relationships and a pledge to work with our customers the best way we are able.
This recession has hit many industries and much of the impetus for correction has come from civic or government projects. We look forward to a time, we believe now to be on the horizon, when consumer confidence improves to the point where work is generated from business initiatives as well.
During the up times and down, you have access to your Bank of Wausau banker. Dealing with a community bank cements that important connection – one critical to business and one that could likely be stronger than that of a larger bank system.
Founded in 1999 the Bank of Wausau had a relatively short life span during which time it remained a small bank. At the time of closing the failed bank has only $43.6 million in assets and $40.7 million in deposits. Nicolet National Bank agreed to purchase $29.9 million of the failed bank’s assets, leaving the remainder to be retained by the FDIC for later disposition.
Bank of Wausau was hopelessly insolvent with nearly 31% of its assets worthless, as implied by the loss of $13.5 million to be taken by the FDIC. Many of the smaller banks that have been closed recently by the FDIC were also granted a long grace period by regulators to attempt a financial recovery. The Bank of Wausau becomes the 18th banking failure of year and the second in Wisconsin. During 2012 there were 51 bank failures.