US regulators closed three banks on Friday, bringing the total number of foreclosures this year to 68, as the pace of bank failures slows. The Federal Deposit Insurance Corporation (FDIC) expects the year-end tally of closures to be below last year's total of 157 banks. In 2009, there were 140 bank failures. This year's bank failures illustrate the problems facing small community banks, many of which are hard hit by the slow economic recovery.
The FDIC said on Friday that Lydian Private Bank in Palm Beach, Florida, had been closed. It said the bank's five branches would reopen Monday as part of Sabadell United Bank. The Lydian bank had about $1.70 billion in total assets and $1.24 billion in total deposits as of June 30, 2011. Increasingly, most of the failures have been smaller institutions, with less than $1 billion in assets - unlike Lydian. The FDIC said First Southern National Bank, of Statesboro, Georgia, was also closed on Friday. The bank's sole branch will reopen on Saturday as a branch of Heritage Bank of the South.