The federal government has closed 1st American State Bank of Minnesota, based in Hancock, Minn., the Federal Deposit Insurance Corp. said Friday.
Community Development Bank of Ogema, Minn., assumed all deposits of the failed bank, an FDIC press release said. The two branches will reopen Monday as branches of Community Development Bank.
Customer deposits will continue to be covered by deposit insurance and automatically switch over.
As of Dec. 31, 1st American State Bank had $18.2 million in total assets and $16.3 million in total deposits. Community Development Bank did not pay an FDIC premium to assume the deposits, but agreed to purchase nearly all of the failed bank's assets.
The FDIC estimates the cost to the Deposit Insurance Fund for the transaction will total $3.1 million. 1st American State Bank is the 12th FDIC-insured bank to fail in 2010, the third in Minnesota.
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The last institution closed in the state was Hallock-based Marshall Bank, National Association, on Jan. 29.
Johnson reports on local business. Reach him at (701) 780-1105; (800) 477-6572, ext. 105; or send e-mail to rjohnson@gfherald.com .
