Bank failure tally for year up to 16!
NEW YORK - February 5, 2010 - Regulators shuttered a Minnesota bank on Friday night, for the 16th failure of 2010.
The bank, 1st American State Bank of Minnesota, in Hancock, was closed by the state's Department of Commerce. The department named the Federal Deposit Insurance Corp. the receiver.
Customers of the failed bank are protected, however. The FDIC covers accounts up to $250,000.
The FDIC entered into a purchase and assumption agreement - in which it transfers control of the failed bank to a healthy institution - with Community Development Bank, FSB. 1st American's two branches will reopen Monday under their new ownership.
Community Development will assume 1st American's $18.2 million in assets and $16.3 in deposits. Community Development entered into a loss-share agreement with the FDIC on $11.7 million of 1st American's assets.
Friday's closure will cost the FDIC approximately $3.1 million.
The bank, 1st American State Bank of Minnesota, in Hancock, was closed by the state's Department of Commerce. The department named the Federal Deposit Insurance Corp. the receiver.
Customers of the failed bank are protected, however. The FDIC covers accounts up to $250,000.
The FDIC entered into a purchase and assumption agreement - in which it transfers control of the failed bank to a healthy institution - with Community Development Bank, FSB. 1st American's two branches will reopen Monday under their new ownership.
Community Development will assume 1st American's $18.2 million in assets and $16.3 in deposits. Community Development entered into a loss-share agreement with the FDIC on $11.7 million of 1st American's assets.
Friday's closure will cost the FDIC approximately $3.1 million.
