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Farmers And Merchants State Bank Of Appleton Mn


Farmers And Merchants State Bank Of Appleton Mn

Farmers and Merchants State Bank of Appleton, Minnesota, has been shut down by the Minnesota Department of Commerce, and the Federal Deposit Insurance Corporation (FDIC) has been named as receiver. The closure, effective immediately, impacts depositors and the local community.

This sudden action raises concerns about the bank's financial health and the security of deposits. The FDIC is working to protect depositors and minimize disruption.

FDIC Steps In

The Minnesota Department of Commerce closed Farmers and Merchants State Bank on Friday, January 26, 2024. The FDIC, as receiver, will transfer all deposits and assets to Bremer Bank, National Association. Bremer Bank will assume all deposit accounts.

Immediate Actions

Bremer Bank will reopen the former Farmers and Merchants State Bank location on Monday, January 29, 2024. Depositors will have full access to their funds at that time. This transition aims to provide a seamless experience for customers.

All depositors of Farmers and Merchants State Bank will automatically become depositors of Bremer Bank. They will have access to their money without interruption. Account numbers and routing numbers will remain the same initially.

Details of the Acquisition

Bremer Bank agreed to purchase all of the assets and assume all of the deposits of Farmers and Merchants State Bank. This move was designed to minimize disruption for the community. The FDIC facilitated the transaction.

As of September 30, 2023, Farmers and Merchants State Bank had approximately $39.7 million in total assets and $38.8 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.8 million. This cost is the difference between the value of the failed bank's assets and the amount Bremer Bank agreed to pay.

The FDIC chose Bremer Bank's bid as the least costly resolution. This decision was made after considering multiple options.

Who's Involved?

The key players in this situation are the Minnesota Department of Commerce, the FDIC, and Bremer Bank, National Association. These entities are working to manage the bank's closure and ensure depositor protection. Farmers and Merchants State Bank's leadership is no longer in control.

The FDIC protects depositors up to $250,000 per depositor, per insured bank. Depositors with accounts exceeding this amount should contact the FDIC directly.

Bremer Bank, headquartered in St. Paul, Minnesota, has a significant presence in the region. Their acquisition of Farmers and Merchants State Bank aims to maintain banking services for the Appleton community.

What's Next for Depositors?

Depositors should continue to use Farmers and Merchants State Bank until Bremer Bank opens on Monday. They can then access their accounts as usual. No immediate action is required from depositors with balances within the FDIC insurance limits.

Depositors who have questions or concerns should contact Bremer Bank or the FDIC directly. Contact information is available on the FDIC's website.

Community Impact

The closure of Farmers and Merchants State Bank is a significant event for Appleton, Minnesota. Local businesses and residents relied on the bank for financial services. The transition to Bremer Bank aims to mitigate the impact on the community.

The FDIC is committed to working with the community to ensure a smooth transition. Information sessions may be held to address depositor concerns.

The long-term effects of the bank closure on the Appleton economy remain to be seen. Local leaders will need to work to support economic stability.

Official Statements

The FDIC issued a press release detailing the closure and acquisition. The release provides contact information for depositors and outlines the steps being taken. Bremer Bank also released a statement reaffirming its commitment to serving the Appleton community.

"We are committed to ensuring a seamless transition for Farmers and Merchants State Bank customers," said Jeanne Crain, CEO of Bremer Bank.

The Minnesota Department of Commerce cited "unsafe and unsound banking practices" as the reason for the closure. Further details regarding these practices have not been released.

Ongoing Developments

The FDIC is continuing to assess the assets of Farmers and Merchants State Bank. They will be selling those assets to recover funds for the Deposit Insurance Fund. This process may take several months or years.

The FDIC is also investigating the circumstances surrounding the bank's failure. The findings of this investigation may be released at a later date.

Bremer Bank is working to integrate Farmers and Merchants State Bank into its operations. This process includes merging systems and training staff. Depositors will be notified of any changes that affect their accounts.

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