Rosemount National Bank of Rosemount, Minnesota, was closed today by the Comptroller of the Currency which appointed the FDIC as receiver. The FDIC sold the failed bank to Central Bank, Stillwater, MN. Central Bank will assume all deposits and purchase all assets of failed Rosemount Bank.
Rosemount Bank was a tiny bank with only one branch and $37.6 million in total assets.
The one branch of Rosemount will reopen on Saturday as a branch of Central Bank and depositors will have full access to their money over the weekend.
Rosemount Bank had been operating under a regulatory Consent Order issued on April 28, 2010, which required the Bank to raise additional capital. Rosemount, like many small banks, was unable to raise additional capital necessary to offset nonperforming loans, and regulators had no choice but to close the bank.
Rosemount National Bank was founded in 1982 and operated as a locally owned independent bank.
Central Bank, chartered in 1988, is an independently owned local bank. Central Bank has approximately $777 million in assets and has been profitable for the past two years.
The failure of Rosemount will result in a loss to the FDIC Deposit Insurance Fund of $3.6 million. Rosemount becomes the nation’s 33rd banking failure and the first in Minnesota.