Bank regulators closed Inter Savings Bank on Friday, a thrift based in Maple Grove that ended 2011 with nearly $6 million in losses.
Buyer Great Southern Bank of Springfield, Mo., said Friday that it's assuming all of InterBank's deposits and almost all of the assets. The Missouri bank is taking about $467 million in deposits at no premium, and is purchasing about $403 million in loans and $11 million of foreclosed properties, at a total discount of $60 million.
Great Southern has a loss-share arrangement with the Federal Deposit Insurance Corp. (FDIC) on $413 million of InterBank's assets in which the FDIC covers 80 percent of the losses on nearly all of the loans and repossessed property. The FDIC estimated the closing will cost the Deposit Insurance Fund about $117.5 million.
The Maple Grove bank was deemed undercapitalized in 2009, and federal regulators ordered the ailing lender in 2010 to recapitalize itself by merger, acquisition or sale.
Inter Savings Bank is the fourth failed bank that publicly held Great Southern has bought, and it marks the bank's entry into Minnesota. Great Southern operates in five states and has assets of nearly $4 billion.
There are no plans at this point to shut down any of InterBank's four branches, where about 40 people work, a Great Southern spokeswoman said.
InterBank is the third bank to fail this year in Minnesota. Forest Lake-based Patriot Bank closed in January and was bought by Savage-based First Resource Bank. Home Savings of America, a national mortgage lender in Little Falls, Minn., was closed in February.
Jennifer Bjorhus 612-673-4683