Raleigh-based First Citizens Bank has expanded into Wisconsin by acquiring the assets of a failed community bank that has two branches in Milwaukee.
First Citizens agreed to purchase essentially all of the assets of North Milwaukee State Bank, which on Friday evening was taken over by state regulators who appointed the Federal Deposit Insurance Corp. as receiver. First Citizens also assumed the bank’s deposits.
First Citizen’s latest acquisition marks the eight time since the summer of 2009 that it has acquired a failed bank in a deal brokered by the FDIC, which insures bank. The FDIC estimates that the North Milwaukee deal will cost its Deposit Insurance Fund $9.6 million, which it calculated was “the least costly institution.”
“Our strength and soundness have allowed us to enter into these types of transactions,” CEO Frank B. Holding Jr. said in a prepared statement.
North Milwaukee, which had $67.1 million in assets and $45.1 million in loans as of Dec. 31, is the first financial institution insured by the FDIC to fail this year. According to the bank’s website, it was established in 1971 as Wisconsin’s first full-service, minority-owned bank.
At the end of 2015 First Citizens had 559 branches in 18 states and the District of Columbia and more than $31 billion in assets.