Regulators Close Rosemount National Bank

Central Bank of Stillwater will assume all of the deposits of Rosemount National Bank-the first Minnesota bank to fail this year.

The Federal Deposit Insurance Corporation (FDIC) on Friday announced that six banks were closed by federal regulators-including Rosemont National Bank, which is based in Rosemont.

The bank was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. The FDIC entered an agreement through which Stillwater-based Central Bank will assume all deposits and assets of Rosemont National Bank.

Rosemount National Bank had about $37.6 million in assets and $36.6 million in deposits as of December 31. The bank's only branch re-opened on Saturday as a branch of Central Bank.

Rosemount National Bank has struggled for some time. In 2010, it posted a net loss of $1.8 million and its risk-based capital ratio dropped to 4.15 percent-which is below the minimum ratio of 10 percent that is required to be considered “well-capitalized” by the FDIC.

In March, University National Bank acquired Rosemount National Bank's branch on the east side of St. Paul for an undisclosed amount of money.

Rosemont National Bank is the first Minnesota bank to be shut down by regulators this year. In 2010, there were eight failed banks in the state.

The other banks that were closed on Friday were Heritage Banking Group of Missouri; New Horizons Bank and Bartow County Bank, both based in Georgia; and Superior Bank and Nexity Bank in Alabama. Nationally, a total of 34 banks have failed so far this year.

 

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