Minnesota bank closes, makes 2nd failure of 2013

(AP) Regulators say they have closed a small lender in Minnesota, making it the second U.S. bank failure of 2013 following 51 closures last year.

The Federal Deposit Insurance Corp. on Friday seized 1st Regents Bank, based in Andover, Minn.

The bank had roughly $50.2 million in assets and $49.1 million in deposits as of Sept. 30.

First Minnesota Bank, based in Minnetonka, Minn., agreed to pay the FDIC a 2 percent premium to assume all of the deposits of the failed lender.

It also agreed to buy essentially all of 1st Regents' assets.

The failure of 1st Regents, which had a single banking branch, is expected to cost the deposit insurance fund $10.5 million.