Hancock, Minn.-based 1st American State Bank of Minnesota was the lone bank closing Friday. The Federal Deposit Insurance Corp. (FDIC)-insured institution was closed by the Minnesota Department of Commerce, and the FDIC entered into a purchase and assumption agreement with Community Development Bank FSB, Ogema, Minn., to assume all of the deposits and essentially all of the assets of 1st American State Bank of Minnesota.
As of Dec. 31, 2009, 1st American State Bank of Minnesota had approximately $18.2 million in total assets and $16.3 million in total deposits. The FDIC and Community Development Bank entered into a loss-share transaction on $11.7 million of the failed bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $3.1 million. 1st American State Bank of Minnesota is the 16th FDIC-insured institution to fail in the nation this year, and the third in Minnesota.
SOURCE: Federal Deposit Insurance Corp.