Andover's 1st Regents marks state's first bank failure in '13
- January 18, 2013 - 7:44 PM
Minnesota has had its first bank failure of 2013.
State regulators closed 1st Regents Bank in Andover on Friday, and First Minnesota Bank in Minnetonka bought all of its deposits and assets.
1st Regents Bank, a small bank with one branch, had about $50.2 million in assets and $49.1 million in deposits. First Minnesota Bank is paying the Federal Deposit Insurance Corp. a premium of 2 percent to assume the deposits, the FDIC said in its announcement Friday.
The drive-through facility at 1st Regents will reopen Saturday but, because of the federal holiday Monday, the bank lobby won't reopen until Tuesday.
First Minnesota Bank, which had assets of $392 million as of September, is owned by Shorewood-based McLeod Bancshares Inc.
The FDIC estimated the bank's failure will cost its deposit insurance fund about $10.5 million.
The last FDIC-insured bank failure in Minnesota was First Commercial Bank in Bloomington, which was shut down in September.
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