A small Minnesota bank was seized by regulators on Friday, bringing the tally of failed US banks this year to 16 so far. The Federal Deposit Insurance Corp said 1st American State Bank of Minnesota had about $18.2 million in assets. Community Development Bank of Ogema, Minnesota, will assume the deposits of 1st American State Bank.
The failure will cost the FDIC's insurance fund about $3.1 million, the agency said. Regulators expect US bank failures to peak this year as institutions continue to suffer from deteriorating loans tied to mortgages and commercial real estate properties. Last year the government seized 140 banks, the most since 1992. That compared to 25 in 2008 and just three in 2007. The recovery in the banking industry lags the healing of the overall economy, the FDIC has warned.
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