RACINE - Forty-nine years of community banking ended Friday when state and federal agents closed the failing Bank of Elmwood.

The Wisconsin Department of Financial Institutions shut down the bank and turned it over to the Federal Deposit Insurance Corp. FDIC in turn sold the bank's deposits and assets to Oak Creek-based Tri City National Bank.

The former Bank of Elmwood's five branches reopened Saturday as Tri City branches.

The independent Bank of Elmwood, based at 2704 Lathrop Ave., had been under scrutiny of the state, federal government and its own board for financial issues turned up in an August 2008 examination.

Bank Chairman, Chief Executive Officer and part owner Jess Levin attributed the bank's problems to the recession and financial problems its customers were having.

In July the Federal Reserve ordered the Bank of Elmwood to increase its value of stocks and bonds by Aug. 29, by merger or sale if necessary.

The deadline passed with no announcement by the bank or regulators - until Friday's action and announcement that the Bank of Elmwood was shut down and its assets purchased by Tri City.