July 17, 2009 / 10:50 PM / 9 years ago

BankFirst of Sioux Falls, South Dakota closes-FDIC

WASHINGTON (Reuters) - U.S. bank regulators closed BankFirst of Sioux Falls, South Dakota, on Friday, the 55th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.

The Federal Deposit Insurance Corp said BankFirst had $275 million in assets and $254 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $91 million.

Alerus Financial, National Association of Grand Forks, North Dakota, agreed to assume all of the deposits of BankFirst, whose two branches will reopen on Monday, the regulator said.

The FDIC said BankFirst’s Sioux Falls location will operate as a branch of First Dakota National Bank of Yankton, South Dakota. Alerus Financial will operate the failed bank’s Minneapolis location as a branch of Alerus Financial, N.A., FDIC said.

Reporting by Richard Cowan, editing by Leslie Gevirtz

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