Ashland-based bank acquires Minnesota institution with FDIC assistance
The Federal Deposit Insurance Corp. (FDIC) ordered four more banks closed on Friday, including Aurora, Minn.-based State Bank of Aurora.
Northern State Bank, based in Ashland, Wis., has acquired the assets and deposits of State Bank of Aurora after it entered into an agreement with the FDIC. The sole branch of State Bank of Aurora reopened yesterday as a branch of Northern State Bank.
As of December 31, 2009, State Bank of Aurora had approximately $28.2 million in total assets and $27.8 million in total deposits. Northern State Bank paid the FDIC a premium of 0.5 percent to assume all of the deposits of State Bank of Aurora. In addition to assuming all of the deposits, Northern State Bank agreed to purchase essentially all of the failed bank’s assets.
In addition to State Bank of Aurora, the FDIC ordered First Lowndes Bank of Fort Deposit, Ala.; Bank of Hiawassee, Hiawassee, Ga.; and Appalachian Community Bank, Ellijay, Ga. to cease operations and be acquired by other banks.