The Minnesota Department of Commerce shut down the State Bank of Aurora on Friday, just one month shy of its 104th birthday.
The bank was the oldest continuously operating business in Aurora, a community of 2,000 in northeast Minnesota that bills itself as the "Star of the North."
The Federal Deposit Insurance Corp. (FDIC), which insures bank deposits, was named receiver and has arranged for all of the bank's assets and deposits to be sold to Northern State Bank of Ashland, Wis. The office is scheduled to reopen for normal business hours as a branch of Northern State Bank.
Bank President James Hausauer could not be reached Friday for comment.
According to the FDIC, State Bank of Aurora had about $28.2 million in assets and $27.8 million in deposits at the end of last year. Northern State Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits and has agreed to buy essentially all of the failed bank's assets, the agency said.
The FDIC estimates that the failure will cost the Deposit Insurance Fund $4.2 million. The Aurora bank is the 37th FDIC-insured institution to fail this year, and the fourth in Minnesota. The last failure in Minnesota was 1st American State Bank of Minnesota in Hancock last month.
DAN BROWNING
