Gateway Bank, a tiny, minority-owned bank in north St. Louis, was seized Friday by state bank regulators and the Federal Deposit Insurance Corp. and sold to Central Bank of Kansas City.

Gateway Bank's single branch, at Union Boulevard near Natural Bridge Road, will reopen today as a branch of Central Bank, according to the FDIC. Gateway's depositors will automatically become depositors of Central Bank, and customers can continue to use their checks and ATM cards. The deposits remain federally insured.

The failure was the second of an area bank during the financial crisis which began 15 months ago — Meridian Bank failed in 2008. Eldred-based Meridian had five branches, including one in Alton, and was owned by a group of Alton-area businesspeople.

Meanwhile, two other banks with branches in the metro area failed this year. Irwin Union Bank of Indiana and Corn Belt Bank of Pittsfield, Ill., failed in September. Both had branches in Clayton.

Gateway Bank, long the only black-owned bank in St. Louis, had a troubled financial history and was on the FDIC's list of problem banks since 2006. The bank had $27.7 million in assets and $27.9 million in deposits. The bank reported losses for at least the past four years, including a $1.3 million loss in the first six months of 2009.

The FDIC attributed its failure to losses on lending, poor business conditions and "poor credit administration practices."

Central Bank's ownership is predominately female, a "gender-based minority," said William M. Dana, the bank's chief executive. The owners are the family of Lucille Tutera.

The bank is listed as a Community Development Financial Institution by federal regulators, meaning that it serves primarily low-to-moderate income neighborhoods in Kansas City.

Gateway's minority neighborhood is "the same demographic we serve in Kansas City," Dana said. "We will continue business as usual," he said, adding that Gateway's staff will remain.

Central Bank has assets of $175 million and seven Kansas City-area branches. The bank made a $1.6 million profit in the first nine months of this year, and has been profitable for at least the previous four years, according to FDIC records.

The Kansas City bank will take over all of Gateway's deposit accounts and "essentially all" of its loans and other assets, the FDIC said. The agency said Gateway's failure will cost the FDIC insurance fund about $9.2 million.

The bank was officially seized by the Missouri Division of Finance, which appointed the FDIC as receiver.