FDIC closes 3 locations on Friday
For the third time in a little over two years, a bank in the Forest Lake area has failed.
Patriot Bank Minnesota, with headquarters in Forest Lake and two offices in Lino Lakes, was the latest area bank to go under. Regulators from the Federal Deposit Insurance Corporation closed the bank on Friday.
On Saturday, the three locations reopened as First Resources Bank which is based in Savage. The Forest Lake bank was the first in the state this year to fail.
The closure of Patriot Bank comes three months after the FDIC closed The RiverBank which was headquartered in Wyoming. The RiverBank’s six locations were purchased by Central Bank of Stillwater.
In December, Central Bank passed on its purchase of the Wyoming facility, closing that location.
It was the second bank in Wyoming to close last year. Earlier, Patriot Bank closed its small Wyoming office and moved its headquarters to Forest Lake in the Headwaters commercial development.
The closure of Patriot Bank marks the first bank failure of the new year in Minnesota.
The bank saw its start in 1998 as Lino Lakes State Bank. The first Forest Lake office opened in 2003 in the Schilling Plaza near Forest Lake High School.
In 2005, the bank changed its name and moved its charter to Wyoming as Patriot Bank Minnesota. In June of 2008, the bank broke ground for its new Forest Lake facility and occupied the building in December of the same year. The bank was the first commercial project to locate in Headwaters near the county government center and public library.
The bank has struggled in recent years following the trend of other community banks that specialize in commercial lending. The bank lost $5.7 million in 2011, the third year in a row that it had been hit with losses.
As 2011 opened, Patriot Bank Minnesota reported an equity rate of just over 1 percent. The equity rate is a measure of safety and federal regulators look for a rate in the area of 7 percent, according to a banker in the Forest Lake area.
All deposits are insured by the FDIC. The FDIC said this week all Patriot Bank customers will be able to use their existing branch bank until they hear from First Resources Bank.
The area’s first bank closure came in September of 2009 when Mainstreet Bank, Forest Lake, failed and Central Bank made its first move to the Forest Lake area.