It has been close to five months since regulators have closed a bank in Minnesota, but the streak was broken Friday, when Community National Bank in Lino Lakes was shut down and its assets and deposits were sold to Farmers & Merchants Savings Bank of Manchester, Iowa.

The two branches of Community National Bank-in Lino Lakes and Vadnais Heights-reopened this weekend under the Farmers & Merchants Savings Bank name. All depositors of the failed bank were automatically transferred to the acquiring bank.

The bank was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

Community National Bank had approximately $31.6 million in total assets and $28.8 million in total deposits as of September 30.

According to the FDIC, Farmers & Merchants Savings Bank didn't pay a premium for Community National Bank's deposits, and it has agreed to purchase “essentially all of the assets.” The FDIC described the sale to Farmers & Merchants Savings Bank as “the least costly resolution.”

The FDIC said in a news release that it will continue to insure the bank's deposits, “so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.”

Community National Bank had a total risk-based capital ratio above 12 percent as of September 30-a high enough ratio to be considered “well-capitalized” by regulators. That said, it reported a loss of nearly $1.9 million in the first three quarters of 2010.

Also, three of the bank's executives were charged last year for allegedly executing a scheme to fraudulently obtain money from financial institutions in connection with a $35 million loan to Ramsey Town Center.

On a national scale, Community National Bank is the 157th FDIC-insured institution to fail this year. It's the eighth bank to close in Minnesota in 2010. The last one to close in the state was Community Security Bank in New Prague, which closed on July 23.