FIs closed: 1st American State Bank of Minnesota, Hancock, Minnesota, USA
On Friday, 5 February, 2010, 1st American State Bank of Minnesota, Hancock, Minnesota was closed by the Minnesota Department of Commerce, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community Development Bank, FSB, Ogema, Minnesota, to assume all of the deposits of 1st American State Bank of Minnesota.
The two branches of 1st American State Bank of Minnesota have repopened as branches of Community Development Bank, FSB.
As of 31 December, 2009, 1st American State Bank of Minnesota had approximately USD18.2 million in total assets and USD16.3 million in total deposits.
Community Development Bank, FSB did not pay the FDIC a premium to assume all of the deposits of 1st American State Bank of Minnesota.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD3.1 million. Community Development Bank, FSB's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. 1st American State Bank of Minnesota is the 16th FDIC-insured institution to fail in the USA this year, and the third in Minnesota.
Download PDF version of this page