Yesterday, the Minnesota Department of Commerce closed Jennings State Bank, [] headquartered in Spring Grove, Minnesota, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Central Bank, headquartered in Stillwater, Minnesota, to assume all of the deposits of Jennings State Bank.

As of July 31, 2009, Jennings State Bank had total assets of $56.3 million and total deposits of approximately $52.4 million. Central Bank also agreed to purchase essentially all of the assets of the failed bank. The FDIC and Central Bank entered into a loss-share transaction on approximately $37.7 million of Jennings State Bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $11.7 million. Jennings State Bank is the 97th bank to fail in the nation this year and the 4th in Minnesota.