The RiverBank Is Second MN Bank to Fail in 2011
The Minnesota Department of Commerce on Friday closed Wyoming-based The RiverBank-marking the second time this year that a Minnesota bank has been shuttered by state regulators.
The Federal Deposit Insurance Corporation (FDIC), which served as receiver, said in a news release that it has entered a deal through which Stillwater-based Central Bank will assume all of The RiverBank's deposits and purchase “essentially all” of the bank's assets. The RiverBank's six branches reopened on Saturday as branches of Central Bank.
As of June 30, The RiverBank had roughly $417.4 million in assets and $379.3 million in deposits. The FDIC said that the deal with Central Bank will cost its insurance fund $71.4 million, but “compared to other alternatives, Central Bank's acquisition was the least costly resolution” for the FDIC and “the transaction also is expected to minimize disruptions for loan customers.”
According to FDIC data, The RiverBank was established in 1908. It is the 75th FDIC-insured institution in the United States to fail this year.
Rosemont National Bank was the first Minnesota bank to be closed by state regulators in 2011. Central Bank also assumed all of Rosemont's deposits and assets, and Rosemont's single branch became a branch of Central Bank.
So far, there have been fewer bank failures in Minnesota this year compared to 2010, when regulators closed eight banks in the state.