WASHINGTON - U.S. bank regulators closed Mainstreet Bank of Forest Lake, Minnesota, on Friday, the 83rd U.S. bank to fail this year as economic weakness continues to take a toll on financial institutions.
The Federal Deposit Insurance Corp said Mainstreet had $459 million in assets and about $434 million in deposits.
Central Bank of Stillwater, Minnesota, agreed to assume all the deposits and nearly all the assets of Mainstreet, whose eight branches will reopen on Saturday as branches of Central Bank, the FDIC said.
The FDIC estimates Mainstreet's failure will cost its deposit insurance fund $95 million. (Reporting by Christopher Doering; editing by Andre Grenon)