WASHINGTON - Minnesota regulators on Friday shut down $30.1 million-asset Town and Country Bank of Almelund after a joint exam with the Federal Deposit Insurance Corp. determined it was insolvent.
Town and Country, the fourth bank to fail this year, "suffered significant capital losses due to its flawed lending practices and poor-quality loan portfolio," the Minnesota Department of Commerce said in a statement. The FDIC was appointed receiver of the failed institution and immediately sold off most of its deposits and assets.
S&C Banco of New Richmond, Wis., acquired Town and Country's $26.5 million of insured deposits and $11.1 million of its assets. S&C Bank, Minnesota, a newly chartered subsidiary of S&C Banco, paid $2.9 million and reopened the bank's three offices Saturday.
Separately, Queen City Federal Savings Bank of Virginia, Minn., paid $399,000 for $9 million of the failed bank's assets. The FDIC retained the remainder for disposition.
Town and Country's failure will cost the Bank Insurance Fund about $2.8 million, the FDIC said.