BankFiesta.com

After back to back weeks of multiple bank failures, only one bank was closed this week by the FDIC. 1st American State Bank of Minnesota, with two branches in Hancock, Minnesota, was closed today by the Minnesota Chamber of Commerce.

Closed
1st American State Bank of Minnesota
The bank, which had two branches and approximately $18.2 million in total assets is one of the smaller of the banks that have failed this year. So far in 2010, 16 banks have been closed down by the FDIC. The agency has assured depositors that there will be no change to their normal banking procedures, however, and on Monday the branches will reopen under the Community Development Bank, FSB, of Ogema, Minnesota.
Banks Still Willing to Assume Deposits
It is a relief that the FDIC was able to find an assuming institution for the failed bank, as last week they were unable to find a buyer for one of the failed banks, causing some to worry if the market has reached a point where no more failed banks can be subsumed into the banking system, which would lead to the FDIC’s Deposit Insurance Fund (DIF) taking the full financial burden of the failure. The estimated cost to the DIF of this weeks failure is $3.1 million.
For more information on bank failures, visit out 2010 Failed Bank List here.