Jennings State Bank, Spring Grove, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Jennings State Bank.
The two branches of Jennings State Bank will reopen on Saturday as branches of Central Bank.
As of July 31, 2009, Jennings State Bank had total assets of $56.3 million and total deposits of approximately $52.4 million. Central Bank did not pay the FDIC a premium for the deposits of Jennings State Bank. In addition to assuming all of the deposits of the failed bank, Central Bank agreed to purchase essentially all of the assets.
The FDIC and Central Bank entered into a loss-share transaction on approximately $37.7 million of Jennings State Bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.7 million.
Jennings State Bank is the 97th FDIC-insured institution to fail in the nation this year, and the fourth in Minnesota. The last FDIC-insured institution closed in the state was Brickwell Community Bank, Woodbury, on September 11, 2009.
This was the second bank acquisition by Central Bank in less than 2 months.
Previously Central Bank has acquired Mainstreet Bank on August 28. At that time Central Bank had paid 0.10 percent premium to acquire all deposits of Mainstreet Bank.
Read the complete press release at : www.fdic.gov
Check all the failed banks in USA at : Failed Banks List
Check all the failed banks in Minnesota at : Failed Banks in Minnesota
Tags: 2009 Failed Banks, bank failures, Central Bank, Failed Banks, Failed Banks 2009, Failed Banks in Minnesota, Failed Banks October, Failed Banks October 2, FDIC, Friday Failures, Jennings State Bank, Mainstreet Bank, Minnesota Bank Failures
