Regulators Shutter Bank with Four Local Branches

Inter Savings Bank was closed by regulators; its deposits and "essentially all" of its assets have been acquired by Missouri-based Great Southern Bank.

Regulators on Friday closed Inter Savings Bank, a Maple Grove-based savings and loan institution with four branches in the Twin Cities, the Federal Deposit Insurance Corporation (FDIC) announced.

At the end of 2011, Inter Savings Bank-which conducted business as InterBank-had about $481.6 million in assets and $473 million in deposits. Through a deal with the FDIC, which was appointed receiver for the shuttered bank, Reeds Spring, Missouri-based Great Southern Bank assumed all deposits of the failed bank and bought “essentially all” of its assets. The FDIC estimated that the transaction will cost its insurance fund $117.5 million but said that “Great Southern Bank's acquisition was the least costly resolution.”

InterBank operated branches in Maple Grove, Edina, Lakeville, and Roseville. The FDIC said that the four locations would reopen Monday as branches of Great Southern Bank.

Great Southern Bank now operates 107 retail banking centers and hundreds of ATMs in Missouri, Arkansas, Iowa, Kansas, Nebraska, and Minnesota. It had $3.9 billion in assets as of March 31.

InterBank is the third financial institution to fail in Minnesota this year; Forest Lake-based Patriot Bank Minnesota was shuttered in January, and Little Falls-based Home Savings of America closed in late February. A total of 20 FDIC-insured institutions have failed nationwide so far this year.

In 2011 (following a year in which eight banks in the state were shuttered), only two Minnesota financial institutions failed.