Minnesota Department of Commerce has closed Brickwell Community Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. However, to protect the depositors, the FDIC has entered into a purchase and assumption agreement with South Dakota-based CorTrust Bank to assume all of the deposits of Brickwell Community Bank.
Reportedly, the sole branch of Brickwell Community Bank will open as a branch of CorTrust Bank. Depositors of Brickwell Community Bank will automatically become depositors of CorTrust Bank. The bank has said that the customers can continue to use their existing branch until CorTrust Bank can fully integrate the deposit records of Brickwell Community Bank.
The FDIC and CorTrust Bank has also entered into a loss-share transaction on approximately $65 million of Brickwell Community Bank’s assets.
