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Multiple bank closures have become commonplace on Friday evenings, but last week, regulators shut the doors on just one institution â€" ""1st American State Bank of Minnesota"":http://www.1stamstatebank.com in Hancock, Minnesota.
[IMAGE] [COLUMN_BREAK]The bank was closed by the Minnesota Department of Commerce. It operated two local branches in Hancock, with $16.3 million in deposits and $18.2 million in total assets.
As receiver, the FDIC reached an agreement with ""Community Development Bank"":http://www.comdevbank.com in Ogema, Minnesota to take over the failed 1st American State Bank's operations.
Community Development Bank did not pay the FDIC a premium for the acquired deposits, and agreed to purchase ""essentially all"" of the failed bank's assets, with the FDIC ""sharing the losses"":http://www.fdic.gov/bank/individual/failed/lossshare/index.html on approximately $11.7 million.
The FDIC said 1st American's closure will cost the agency's insurance fund an estimated $3.1 million. The Minnesota bank was one of the smallest institutions to go under this year. So far there have been ""16 bank failures in 2010"":http://www.fdic.gov/bank/individual/failed/banklist.html, and three in Minnesota alone.
