Community Security Bank, New Prague, Minnesota

Community Security Bank, New Prague, Minnesota, was the 101st FDIC bank beat down this year.The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $18.6 million.

Community Security Bank, New Prague, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Roundbank, Waseca, Minnesota, to assume all of the deposits of Community Security Bank.

The sole branch of Community Security Bank will reopen on Saturday as a branch of Roundbank. Depositors of Community Security Bank will automatically become depositors of Roundbank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Community Security Bank should continue to use their existing branch until they receive notice from Roundbank that it has completed systems changes to allow other Roundbank branches to process their accounts as well.

This evening and over the weekend, depositors of Community Security Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, Community Security Bank had approximately $108.0 million in total assets and $99.7 million in total deposits. Roundbank will pay the FDIC a premium of 0.89 percent to assume all of the deposits of Community Security Bank. In addition to assuming all of the deposits of the failed bank, Roundbank agreed to purchase essentially all of the assets.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-866-692-8944. The phone number will be operational this evening until 9:00 p.m., Central Daylight Time (CDT); on Saturday from 9:00 a.m. to 6:00 p.m., CDT; on Sunday from noon to 6:00 p.m., CDT; and thereafter from 8:00 a.m. to 8:00 p.m., CDT.

If you should have any further questions, please do not hesitate to visit the FDIC’s website for Community Security Bank.

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