FIs closed: Community Security Bank, New Prague, Minnesota, USA
On Friday, 23 July, 2010, Community Security Bank, New Prague, 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 Roundbank, Waseca, Minnesota, to assume all of the deposits of Community Security Bank.
The sole branch of Community Security Bank reopened on Saturday as a branch of Roundbank.
As of 31 March, 2010, Community Security Bank had approximately USD108.0 million in total assets and USD99.7 million in total deposits.
Roundbank will pay the FDIC a premium of 0.89 percent to assume all of the deposits of Community Security Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund will be USD18.6 million.
Community Security Bank is the 101st FDIC-insured institution to fail in the nation this year, and the seventh in Minnesota.
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