Multiple bank closures have become commonplace on Friday evenings, but last week, regulators shut the doors on just one institution – 1st American State Bank of Minnesota in Hancock, Minnesota.

The bank was closed by the Minnesota Department of Commerce. It operated two local branches in Hancock, with $16.3 million in deposits and $18.2 million in total assets.

As receiver, the FDIC reached an agreement with Community Development Bank in Ogema, Minnesota to take over the failed 1st American State Bank’s operations.

Community Development Bank did not pay the FDIC a premium for the acquired deposits, and agreed to purchase “essentially all” of the failed bank’s assets, with the FDIC sharing the losses on approximately $11.7 million.

The FDIC said 1st American’s closure will cost the agency’s insurance fund an estimated $3.1 million. The Minnesota bank was one of the smallest institutions to go under this year. So far there have been 16 bank failures in 2010, and three in Minnesota alone.