Regulators closed five banks Friday, bringing the nationwide total to 119 closed since the beginning of this year. So far this year, 21 Georgia banks have been shut down, including one this week.
United Security Bank of Sparta was closed down by the Georgia Department of Banking and Finance. It will reopen as a branch of Ameris Bank. The four other banks shut down were in California, Missouri, Minnesota and Michigan.
For Georgia, United Security is the latest in a string of bank failures for the state. Almost all of the banks closed were start ups that specialized in real estate and construction loans.
Georgia lawmakers are trying to figure out how to keep community banks like United Security open, while the state's banking industry is working to reassure the public that the vast majority of Georgia's financial institutions are solvent.
Friday’s closures are expected to cost the Federal Deposit Insurance Corporation around 1.5 billion dollars. The FDIC estimates failed banks could cost as much as 100 billion dollars over the next three years.