WASHINGTON — State and federal regulators shut three banks late Friday — $538 million-asset Warren Bank in Michigan, $56.3 million-asset Jennings State Bank of Spring Grove, Minnesota and $39.5 million-asset Southern Colorado National Bank in Pueblo — bringing this year's failure total to 98.

Failures in 2009 are now nearly four times their total from last year, with many more expected this year. The Federal Deposit Insurance Corp. said this week that it expects failures to cost $100 billion over the next four years, up from a $70 billion estimate in May. As a result, the agency is planning to require banks to prepay three years worth of premiums to ensure it has sufficient liquidity to deal with more failures.

The Huntington National Bank of Columbus, Ohio, agreed to purchase all $501 million of Warren Bank's deposits, but bought just $83 million of its assets. The FDIC said that it would retain the rest for later disposition. Huntington agreed to pay a 0.27% premium to assume the deposits.

Like many other recent failures, Warren Bank was small, but the cost to the Deposit Insurance Fund was high. The FDIC estimated the resolution would cost $275 million, more than 50% of Warren Bank's asset size.

Central Bank of Stillwater, Minn., agreed to purchase all of Jennings State Bank's $52.4 million in deposits and virtually all of its assets. The FDIC said Central Bank did not pay a premium for the deposits. The agency entered into a loss-sharing agreement with Central Bank on $37.7 million of the failed bank's assets.

The FDIC estimated Jennings State Bank's failure will cost $11.7 million.

Legacy Bank of Wiley, Co., agreed to purchase all of Southern Colorado National Bank's $31.9 million after paying a 1% premium. Legacy agreed to purchase virtually all of the failed bank's assets, and entered into a loss-sharing agreement with the FDIC on approximately $25.5 million of them.

The failure is expected to cost $6.6 million.

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