Minnesota: First Minnesota Bank Assumes Deposits of 1st Regents Bank

Jan 21 - 1st Regents Bank, Andover, Minn., has been closed by the Minnesota Department of Commerce, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Minnesota Bank, Minnetonka, Minn., to assume all of the deposits of 1st Regents Bank.

As of Sept. 30, 2012, 1st Regents Bank had approximately $50.2 million in total assets and $49.1 million in total deposits. First Minnesota Bank will pay the FDIC a premium of 2 percent to assume all of the deposits of 1st Regents Bank. In addition to assuming all of the deposits of the failed bank, First Minnesota Bank agreed to purchase essentially all of the assets.

Customers with questions about the transaction should call the FDIC toll-free at 800-886-2504.  Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/1stregents.html.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $10.5 million. Compared to other alternatives, First Minnesota Bank's acquisition was the least costly resolution for the FDIC's DIF. 1st Regents Bank is the second FDIC-insured institution to fail in the nation this year, and the first in Minnesota. The last FDIC-insured institution closed in the state was First Commercial Bank, Bloomington, on Sept. 7, 2012.