The State closed Elmwood on October 23, 2009, and the Federal Deposit Insurance Corporation
(FDIC) was named receiver. The FDIC estimated that the bank's failure would result in a
$90.6 million loss to the Deposit Insurance Fund (DIF), or 26.7 percent of the bank's
$339.1 million in total assets. In a letter dated November 12, 2009, the FDIC Inspector General
advised us that the FDIC had determined that Elmwood’s failure would result in a material loss
to the DIF. Under section 38(k) of the Federal Deposit Insurance Act (FDI Act), a loss to the
DIF is considered material if it exceeds the greater of $25 million or 2 percent of the institution’s
total assets.