Patriot Bank Minnesota shuttered by regulators
01/31/2012
Minnesota regulators closed Patriot Bank Minnesota in Forest Lake on Friday, January 27.
With assets of $111.3 million at September 30, the bank was rated E- ("Very Weak") by Weiss at the
time of failure and was first identified as "Weak" in December 2008. It reported a loss of more
than $5 million through the nine months ended September 30, 2011. It had below-FDIC-mandated Tier
1 (5%) and risk-based capital (6%) ratios of 1.85% and 3.43%, respectively, and nonperforming loans
represented 9.5% of its loan portfolio.
First Resource Bank, Savage, Minnesota, with assets of $14.9 million and a Weiss Financial
Strength Rating of C ("Fair"), assumed the deposits of Patriot Bank. First Resource has high Tier
1 and risk-based capital ratios of 64.68% and 107.27%, respectively. It has an above-average
nonperforming-loans-to-total-loans ratio of 9.54% and lost $335,000 through September 30, 2011 for
an ROA of -2.34%, well-below the industry average of 0.94%.