Bank Failure Friday

After two weeks without a bank failure, regulators announced that three banks have failed on Friday. I am hearing from my banking sources that a wave of failures is on the way, so quite large.-Lou

Three banks fail, bringing year's total to 40

SAN FRANCISCO (MarketWatch) -- Banks in Georgia, North Carolina and Kansas were closed by regulators Friday, bringing the total number of failures for the year to 40 as the financial and credit markets continue to claim victims.

Fayetteville, Ga.-based Southern Community Bank was closed, according to the Federal Deposit Insurance Corporation; its deposits have been assumed by Blairsville, Ga.-based United Community Bank.

Southern Community is the seventh bank to fail in Georgia this year. It had $377 million in assets and $307 million in deposits as of May 29, according to the FDIC. United Community has agreed to acquire roughly $364 million of the failed bank's assets.

The FDIC estimated that the failure of Southern Community will cost its deposit-insurance fund $114 million.

Wilmington, N.C.-based Cooperative Bank was also closed, marking the second failure in that state this year. Troy, N.C.-based First Bank has agreed to assume the failed bank's deposits.

Cooperative Bank had $970 million in assets and $774 million in deposits as of May 31, according to the FDIC. First Bank also has agreed to buy roughly $942 million of the failed bank's assets.

The FDIC estimated that the failure of Cooperative Bank will cost its deposit-insurance fund $217 million.

Late Friday, the FDIC said that Anthony, Kan.-based First National Bank of Anthony was also closed by regulators. South Hutchinson, Kan.-based Bank of Kansas has agreed to assume the failed bank's deposits, the regulator said.

National Bank of Anthony, the second bank in that state to fail this year, had 156.9 million in assets and $142.5 million in deposits as of March 31, the FDIC said.

The failure of National Bank of Anthony will cost the deposit insurance fund $32.2 million, the regulator said.