(PTI): US regulators have closed three small banks in North Carolina, Georgia and Kansas, bringing to 40 the total number of US bank failures so far this year.
The Federal Deposit Insurance Corp (FDIC) said the closure of the three banks is expected to cost the FDIC deposit insurance fund an estimated $363.2 million.
The largest of the banks closed on Friday was Cooperative Bank of Wilmington, North Carolina, whose deposits worth $774 million was purchased by First Bank of Troy.
The FDIC also announced the failure of Southern Community Bank of Fayetteville, Georgia and First National Bank of Anthony in Kansas.
United Community Bank of Blairsville, Georgia, and Bank of Kansas in South Hutchinson, Kansas, agreed to assume the insured deposits of Southern Community and First National Bank respectively.
Despite the US government’s efforts to drive its economy out of the 18-month-old recession in years, bank failures have largely increased this year. There were 25 failures in all of 2008 and just three in 2007.
The FDIC has put 305 financial institutions on its list of banks in danger of failure. It has not revealed the names of the institutions.
