Today May 21, 2010, Pinehurst Bank of St. Paul Minnesota was closed by the Minnesota Department of Commerce, with the Federal Deposit Insurance Corporation appointed as receiver. All deposits of the bank were assumed by Coulee Bank of La Crosse, Wisconsin though a purchase and assumption agreement.
Pinehurst Bank was formed in 2003 and opened its doors on April 2, 2004. They had one location had one location in Highland Park, Saint Paul, MN and 18 employees according to information posted on the bank website.
The bank had approximately $61.2 million in total assets and $58.3 million in total deposits.
The single location of Pinehurst Bank will reopen tomorrow as a branch of Coulee Bank. Depositors will automatically become depositors of Coulee Bank and continue to be insured by the FDIC.
Coulee Bank will pay a premium of 1.33% to assume the deposits of Pinehurst Bank and will also purchase essentially all of the assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $6.0 million.
This will be the seventy-third FDIC insured bank to fail during 2010.
More information: FDIC.GOV