Badger State Bank, Cassville, Wisconsin, was closed today by the Wisconsin Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC sold Badger to Royal Bank, Elroy, Wisconsin, which assumed all deposits of failed Badger Bank.
Badger State Bank was a one branch bank with total assets of $83.8 million and total deposits of $78.5 million at December 31, 2010.
The Bank had a long history. According to the company website:
The bank was founded on October 15, 1910. The founder’s were
Gus A. Klindt, Walter Kleinpell, and Andrew Linder. On January 1, 1915,
Badger State Bank moved to its present location, the building having been
newly constructed in 1914. On October 13, 1976, ground was broken for the
addition which is presently the main lobby and offices.
We currently have 18 employees with over 380 years of combined service. Our
employees all live, work, and play here. We know our neighbors and help them
as we all try to make this community a great place to live.
Royal Bank agreed to purchase all of Badger State Bank assets. The FDIC press release made no mention of a loss-share agreement with Royal Bank.
The estimate cost to the FDIC Deposit Insurance Fund for closing Badger State Bank is $17.5 million. Badger State is the nation’s 17th banking failure this year and the second in Wisconsin.