WASHINGTON, D.C. (BNO NEWS) — U.S. regulators closed four more banks on Friday, raising the day’s total to seven and the year’s tally to 37.

Closed were the State Bank of Aurora in Aurora, MN, the First Lowndes Bank in Fort Deposit, AL, the Bank of Hiawassee in Hiawassee, GA and the Appalachian Community Bank in Ellijay, GA.

Earlier today, regulators closed the Advanta Bank Corp. in Draper, UT, the Century Security Bank in Duluth, GA and the American National Bank in Parma, OH.

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WASHINGTON, D.C. (BNO NEWS) — Federal regulators on Friday closed the 1st American State Bank of Minnesota based in Hancock, marking the sixteenth U.S. bank failure of 2010 following an economic turbulent year that saw more than one hundred U.S. banks fail.

The 1st American State Bank of Minnesota was closed by the Minnesota Department of Commerce after its regular closing time on Friday. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver following its closure, who immediately entered into a purchase and assumption agreement with the Minnesota-based Community Development Bank, FSB in Ogema to assume all of the failed bank’s deposits.

Most, if not all customers, should see no or little service disruptions despite the closure of the institution. On Monday, the two branches of the bank in Hancock and Benson will reopen during their normal business hours as branches of the Community Development Bank, FSB.

All of the failed bank’s services, including checks, ATM and debit cards, will remain active. “Checks drawn on the bank will continue to be processed,” the FDIC said in a statement. “Loan customers should continue to make their payments as usual.”

As of December 31 of last year, the 1st American State Bank of Minnesota had approximately $18.2 million in total assets and $16.3 million in total deposits. Community Development Bank, FSB did not pay the FDIC a premium to assume all of the bank’s deposits, the FDIC said. “In addition to assuming all of the deposits of the failed bank, Community Development Bank, FSB agreed to purchase essentially all of the assets.”

The FDIC and Community Development Bank, FSB entered into a loss-share transaction on approximately $11.7 million of 1st American State Bank of Minnesota’s assets. Community Development Bank, FSB will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

The FDIC said it estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.1 million. It said Community Development Bank’s acquisition of the deposits was the “least costly” resolution compared to other alternatives.

Friday’s closure was not only the sixteenth U.S. bank failure of 2010 but was also Minnesota’s third bank failure of the year. Regulators last closed the Marshall Bank, N.A. in Hallock on January 29.

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HALLOCK, MINNESOTA (BNO NEWS) — Federal regulators on Friday closed the Marshall Bank, National Association in Hallock, Minnesota marking the eleventh U.S. bank failure of 2010 following an economic turbulent year that saw more than one hundred U.S. banks fail.

The Marshall Bank, N.A. was closed by the Office of the Comptroller of the Currency after its regular closing time on Friday. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver following its closure, who immediately entered into a purchase and assumption agreement with the North Dakota-based United Valley Bank to assume all of the failed bank’s deposits.

Most, if not all customers, should see no or little service disruptions despite the closure of the institution. On Saturday, all 3 branches of the Marshall Bank, N.A. will reopen during their normal business hours as branches of United Valley Bank.

All of the failed bank’s services, including checks, ATM and debit cards, will remain active. “Checks drawn on the bank will continue to be processed,” the FDIC said in a statement. “Loan customers should continue to make their payments as usual.”

As of September of last year, the Marshall Bank, N.A. had approximately $59.9 million in total assets and $54.7 million in total deposits. United Valley Bank paid the FDIC a premium of 7.35 percent to assume Marshall Bank, N.A. deposits, the FDIC said. “In addition to assuming all of the deposits of the failed bank, United Valley Bank agreed to purchase essentially all of the failed bank’s assets.”

The FDIC and United Valley Bank entered into a loss-share transaction on approximately $23.9 million of Marshall Bank, N.A.’s assets. United Valley Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

The FDIC said it estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.1 million. It said United Valley Bank’s acquisition of the deposits was the “least costly” resolution compared to other alternatives.

Friday’s closure was not only the twelfth U.S. bank failure of 2010 but was also Minnesota’s second bank this year. Regulators last closed the St. Stephen State Bank in St. Stephen.

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SAINT STEPHEN, MINNESOTA (BNO NEWS) — Federal regulators on Friday closed the St. Stephen State Bank in Saint Stephen, Minnesota, marking the third U.S. bank failure of 2010 following an economic turbulent year that saw more than one hundred U.S. banks fail.

The St. Stephen State Bank was closed by the Minnesota Department of Commerce after its regular closing time on Friday. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver following its closure, who immediately entered into a purchase and assumption agreement with the First State Bank of St. Joseph, Minnesota, to assume all of the failed bank’s deposits.

The St. Stephen State Bank was founded in 1920 by a group of farmers and business people.

Most, if not all customers, should see no or little service disruptions despite the closure of the institution. On Saturday, the two branches of the St. Stephen State Bank will reopen during their normal business hours as a branch of the First State Bank of St. Joseph.

All of the failed bank’s services, including checks, ATM and debit cards, will remain active. “Checks drawn on the bank will continue to be processed,” the FDIC said in a statement. “Loan customers should continue to make their payments as usual.”

As of September of last year, the St. Stephen State Bank had approximately $24.7 million in total assets and $23.4 million in total deposits. The First State Bank of St. Joseph did not pay the FDIC a premium to assume the deposits of the St. Stephen State Bank, the FDIC said. “In addition to assuming all of the deposits of the St. Stephen State Bank, First State Bank of St. Joseph agreed to purchase essentially all of the failed bank’s assets.”

The FDIC and the First State Bank of St. Joseph entered into a loss-share transaction on approximately $20.4 million of St. Stephen State Bank’s assets. First State Bank of St. Joseph will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.

The FDIC said it estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.2 million. It said First State Bank of St. Joseph’s acquisition of the deposits was the “least costly” resolution.

Friday’s closure was not only the third U.S. bank failure of 2010 but was also Minnesota’s first bank failure since November 6, 2009. Regulators then closed the Prosperan Bank in Oakdale.

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