A small Minnesota bank made a successful $730 million bid to the Federal Deposit Insurance Corp. for performing and nonperforming residential loans made by failed First National Bank of Nevada, the chief executive officer said Thursday.
Stearns Bank of St. Cloud, Minn., a $1 billion-asset institution with an office in Scottsdale, Ariz., made the successful bid for the residential loans, said Norman Skalicky, the bank’s chief executive officer.
Federal regulators seized First National Bank of Nevada, a $3.4 billion-asset bank with operations in Arizona and Nevada, in July.
Mutual of Omaha Bank took over all of First National’s deposits, and the FDIC took control of assets including the bank’s loan portfolio.
In an announcement Thursday, the FDIC said it sold $1.45 billion in performing and nonperforming residential and commercial loans to Stearns Bank and Diversified Business Strategies.
Stearns bought loans secured by residential real estate, including raw land, residential lots and some finished houses, Skalicky said.
Most of the collateral is in the Phoenix area. Other real estate collateral is in Southern Nevada, the Tucson area, California and New Mexico.
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