Georgia bank fails - United Security Bank of Sparta

A bank in Georgia failed on Friday, bringing the 2009 tally to 116.

United Security Bank of Sparta, Ga., closed its doors for the last time on Friday, said the Federal Deposit Insurance Corp. Moultrie, Ga.-based Ameris Bank will assume control of all United Security's deposits.

Customers of United Security are protected, however. The Federal Deposit Insurance Corp., which has insured bank deposits since the Great Depression, currently covers customer accounts up to $250,000.

Customers of the failed bank can access their money over the weekend by writing checks or using ATMs or debit cards. Checks will continue to be processed, and borrowers should make mortgage and loan payments as usual.

Ameris Bank will pay the FDIC a premium of 0.36% to take control of American United's $150 million in deposits.

United Security had $157 million in assets, and the FDIC and Ameris entered into a loss-share transaction on $123 million of those assets. The agreement means Ameris will share in the losses on the assets covered.

The failure of is expected to cost the Deposit Insurance Fund an estimated $58 million

An average of 10 banks have failed per month this year, and the federal coffer is thinning under the massive strain. The fund now stands below $10 billion, down significantly from $45 billion a year ago.

When the FDIC factors in expected closures, the agency says the fund is in the red and will likely remain there through 2012. Bank failure costs are expected to total $100 billion over the next four years.

So far 2009 has seen more than four times the number that were closed in 2008. It's the highest total since 1992, when 181 banks failed.