Regulators shut down Minnesota's RiverBank

  • Article by: JACKIE CROSBY , Star Tribune
  • Updated: October 7, 2011 - 8:18 PM

Its seven branches will reopen as Central Bank.

State regulators closed down the 114-year-old RiverBank on Friday, making it the nation's 75th bank to fail this year and the second in Minnesota.

The RiverBank was based in Wyoming, Minn., and had seven locations across the state and northwestern Wisconsin. All locations will reopen Saturday as Central Bank, a Stillwater-based bank that has assumed the deposits and purchased the assets of the failed RiverBank.

Customers' accounts will automatically be transferred, and deposits will continue to be insured by the Federal Deposit Insurance Corporation (FDIC), according to federal officials.

All banking activities -- including writing checks, making deposits, using ATM and debit cards -- will continue in the evening and over the weekend.

The RiverBank had approximately $417.4 million in assets and $379.3 million in deposits. The Minnesota Department of Commerce shuttered the institution and appointed the FDIC as receiver.

Central Bank and the FDIC entered into a loss-share agreement on $339.3 million of The RiverBank's assets, according to government officials.

The Deposit Insurance Fund, a private, industry-sponsored fund that insures deposits above the FDIC limits, will take a $71.4 million hit, according to the FDIC.

The other FDIC-backed bank to close in Minnesota this year was the Rosemount National Bank, which shut in April. Central Bank assumed the assets of that bank as well.

Customers with questions can call the FDIC toll-free at 1-877-367-2717 or go to www.fdic.gov/bank/individual/failed/riverbank.html.

Jackie Crosby • 612-673-7335

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