A quiet Friday; only one bank closed

Regulators seized just one bank Friday, a small institution in  west-central Minnesota.

The Minnesota Department of Commerce shut down 1^st  American State Bank, in Hancock, Minn., and appointed the Federal Deposit Insurance Corp. as receiver.

The FDIC arranged for Community Development Bank FSB, of Ogama, Minn., to take over the failed bank's two branches, its $$16.3 million in deposits and its $18.2 million in assets.

The two branches will reopen as Community Development Bank locations on Monday.

The FDIC and Community Development Bank entered into a loss-sharing agreement on $11.7 million of 1st American's assets. The FDIC says such deals are designed to maximize the return on the assets by keeping them in the private sector.

1^st American was the 16^th bank to fail this year. The FDIC said the closing would cost its deposit insurance fund an estimated $3.1 million.