Regulators in Minnesota closed 1st American State Bank late Friday in the 16th bank seizure of the year.

The $18 million-asset bank, based in Hancock, was the third institution to be closed in the state this year.

The Federal Deposit Insurance Corp. said Community Development Bank FSB in Ogema would take over 1st American's operations. The acquirer agreed to assume all of the $16 million in deposits, and virtually all of 1st American’s assets. The FDIC and Community Development will share losses on almost $12 million of those assets.

The FDIC estimated the failure will cost $3 million.