Biz Buzz

American National Bank in Baxter made the Minneapolis Star Tribune last week in a list of Minnesota banks "with the highest degree of concentration in commercial real estate (CRE) loans in relation to total equity, a measure of bank financial strength.

"Regulators consider it a red flag if the ratio exceeds 300 percent."

American National Bank in Baxter was third from the top of the list with a CRE concentration of 506 percent. The Star Tribune reported "CRE Concentration is a bank's commercial real estate as a percentage of its total capital, or common stock and earnings. CRE includes commercial mortgages, construction and land loans. It does not include loans for owner-occupied real estate."

The list included 17 banks.

In Baxter, Thomas Johnson, American National Bank president and chief executive officer, was asked for a comment for the Dispatch. Contacted through his office, Johnson forwarded a reply of "no comment."

American National Bank closed its South Sixth branch in Brainerd on April 1. A branch, constructed in 2005 in Elk River also was closed. With strong branches in Pequot Lakes and Baxter, American National Bank in April reported having three offices in this market during these economic times didn't make sense.

The Federal Deposit Insurance Corp.'s list of failed banks has 170 banks on that roster since 2007. There are seven failed banks in Minnesota, including First Integrity Bank of Staples. The Staples bank, with $54.7 million in total assets, was closed May 30, 2008 and deposits went to First International Bank in Watford, N.D. The FDIC's list doesn't include any failed banks in 2005 or 2006.

Going back to records from 1934, the FDIC records 54 bank failures for Minnesota and 11 assists. Failures included First State Bank in Hewitt in 1938, Lakeland State Bank in Pequot Lakes in 1986, Todd County State Bank in Long Prairie in 1987. The First Savings and Loan Assoc. in Brainerd is on the list as an institution in an assistance transaction in 1988. The FDIC reports in most assistance transactions, insured and uninsured depositors are protected, the institution remains open and its charter survives.

The Star Tribune article quoted Warren Smith, chief financial officer of 1st American State Bank of Hancock in listing the bank's struggles after building projects failed or struggled.

"Nearly two years after the economic crisis began, losses on commercial real estate remain the biggest threat to the financial health of Minnesota's community banks," the Star Tribune reported, adding developers of unfinished housing projects or empty office parks were walking away from debts.

"Experts predict that rising losses on commercial real estate projects could topple up to a dozen of Minnesota's community banks this year," the Star Tribune reported.

The Mississippi Belle, the paddle boat that plied the waters off Lum Park and the island dotted Mississippi River, has a new home.

Breezy Point Resort purchased the Mississippi Belle and plans to rename the paddle boat with help from a contest, Dave Spizzo, assistant general manager, reported. In the spring, the resort plans to offer a charter cruise boat on Big Pelican Lake with regularly scheduled public cruises, and private parties such as groom's dinners, weddings and birthdays up to 100 people.

Breezy Point Resort reports the cruise boat ties into days gone by when the resort's cruise boat the Paddlin Pelican worked the waters. The boat will be at the Marina II restaurant docks on Pelican Lake.

Nominations are being sought for Brainerd Restoration's Biannual Awards Dinner for Downtown Brainerd in late February.

Categories are: Life's work dedicated to downtown, love the exterior-bettering the aesthetics of downtown, interior renovation, the spirit of economic development, building addition and renovation, leadership, the spirit of community and celebration, new lease on life-functional renovation of a building.

Entries must be submitted by Jan. 25 to be considered. Go online to http://www.surveymonkey.com/s/RDLM3ZD.

The Crow Wing Food Co-op, on Washington Street in Brainerd is hosting an event at 6 p.m. Wednesday at the Franklin Arts Center. Melissa Stephens, general manager at the co-op, said the along with The Farm of Plenty, they will be showing the film "Food Fight."

The film's co-producer is expected from California to host a question and answer forum following the film along with other farming experts. Prairie Bay is catering the event.

Speaking of films, the Brainerd lakes area tourism is part of a half-hour film that explores the economic importance of tourism. The film - "Tourism in Minnesota: Ideas at Play" - was co-produced by Twin Cities Public Television, University of Minnesota Extension and the University of Minnesota Tourism Center. The Brainerd Lakes Chamber worked with the tourism center to "examine options, educate volunteers and staff, and research important questions," the chamber reported.

The film debuted in December and is online at www.tourism.umn.edu/NewsEvents/Videos/index.htm.

Explore Minnesota Tourism reports tourism is an $11 billion industry in the state, which produces 15 percent of all state sales tax and 10 percent of the state's jobs, or more than 244,000.

The Corner Store Tesoro gas station/convenience store has been sporting a closed lettering over a "go Vikings" sign in its window. But the station, on Highway 210 East between Pillager and Baxter, appears to have new life. A sign sprouted out front proclaiming the store would reopen soon.

RENEE RICHARDSON, senior reporter, may be reached at renee.richardson@brainerddispatch.com or 855-5852.