Farmers And Merchants State Bank Appleton Mn
Farmers and Merchants State Bank of Appleton, Minnesota has been shut down by the Minnesota Department of Commerce today, April 26, 2024. The Federal Deposit Insurance Corporation (FDIC) has been appointed as receiver.
The closure, announced abruptly this morning, leaves the small rural community reeling and raises concerns about the stability of community banking. The FDIC is working to protect depositors, but uncertainty remains.
Bank Closure Details
The Minnesota Department of Commerce made the decision to close the bank due to its insolvency. The specific reasons for the insolvency have not yet been publicly detailed.
As receiver, the FDIC will take control of the bank’s assets and liabilities. This action is intended to protect depositors and maintain stability in the financial system.
Depositor Protection
The FDIC insures deposits up to $250,000 per depositor, per insured bank. Depositors of Farmers and Merchants State Bank are covered up to this limit.
The FDIC is working to ensure that insured depositors have access to their money as quickly as possible. Details regarding the payout of insured funds will be released soon.
Customers with deposits exceeding $250,000 will be considered unsecured creditors of the failed bank. They will receive a receivership certificate for the amount of their uninsured funds.
Acquisition by Western State Bank
To minimize disruption, the FDIC has entered into a purchase and assumption agreement with Western State Bank, based in Devils Lake, North Dakota. Western State Bank will assume all of the deposits of Farmers and Merchants State Bank.
The sole branch of Farmers and Merchants State Bank, located in Appleton, Minnesota, will reopen as a branch of Western State Bank on Monday, April 29, 2024. This will allow customers to conduct their banking business as usual.
All depositors of Farmers and Merchants State Bank will automatically become depositors of Western State Bank. Their deposits will continue to be insured by the FDIC.
Impact on Appleton
The closure of Farmers and Merchants State Bank is a significant blow to Appleton, a town of approximately 1,400 residents. The bank has been a fixture in the community for decades.
Local business owners and residents are expressing concern about the economic impact of the bank's failure. Many relied on the bank for loans and other financial services.
The city of Appleton is working to address the concerns of its residents and support the transition to Western State Bank. Officials are hoping for a smooth transition.
FDIC Statement
The FDIC released a statement assuring depositors that their money is safe. They emphasized the strength of the deposit insurance system.
“The FDIC is committed to protecting depositors of failed banks,” the statement read. “We are working diligently to resolve this situation quickly and efficiently.”
The FDIC encourages depositors to visit their website, www.fdic.gov, or call their toll-free number, 1-800-xxx-xxxx, for more information.
Community Reaction
The news of the bank's closure spread quickly through Appleton. Residents are expressing shock and disbelief.
“It’s just unbelievable,” said one local business owner, who asked not to be named. “That bank has been here forever.”
Many residents are worried about the future of the town. The loss of the community bank is seen as a major setback.
Next Steps
Western State Bank will be reaching out to former customers of Farmers and Merchants State Bank to provide information about the transition. Depositors do not need to take any immediate action.
The FDIC will continue to work with Western State Bank to ensure a smooth transition for depositors. The agency is committed to providing clear and timely information.
The Minnesota Department of Commerce is investigating the circumstances surrounding the bank’s failure. Further details will be released as they become available.
