The year's second bank failure involved a small institution.

The Minnesota Department of Commerce closed the $50.2 million-asset 1st Regents Bank in Andover on Friday.

The Federal Deposit Insurance Corp., as receiver for the failed bank, entered into a purchase-and-assumption agreement with First Minnesota Bank in Minnetonka. First Minnesota also agreed to pay a 2% premium to assume the failed bank's $49.1 million in deposits.

The FDIC said 1st Regents' failure should cost the Deposit Insurance Fund $10.5 million.

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