Regulators shut down three more banks

Regulators closed three banks Friday, the biggest of which was Barnes Banking Co. of Kaysville, Utah.

The Federal Deposit Insurance Corp. could not find a buyer, so it created a temporary bank that will operate until Feb. 12 so deposits can access their accounts and move their money to other institutions.

Zions First National Bank of Salt Lake City will provide operational support for the temporary bank.

Barnes Banking had $786.5 million in deposits and $827.8 million in  assets. It had been operating since May under a consent order with the Federal Reserve. That order called for it bolster its finances, improve its credit-review process and strengthen its management.

Illinois regulators closed Town Community Bank and Trust, in Antioch, and appointed the FDIC as receiver. The FDIC arranged for First American Bank, of Elk Grove Village, Ill., to take over the failed bank's lone branch, its $67.4 million in deposits and $67.6 million of its assets. First American and the FDIC entered into a loss-sharing deal on $56.2 million of those assets.

The third bank that went under Friday was St. Stephen State Bank in St. Stephen, Minn. The FDIC arranged for another Minnessota institution,  First State Bank of St. Joseph, to take over its two branches, $23.4 million in deposits and $24.7 million in assets.

First State Bank and the FDIC will share losses on $20.4 million of those assets.

The FDIC said the three bank closings would cost its insurance fund an estimated $296.3 million, with Barnes Banking accounting for $271.3 million of that total.

The total number of failures for the year to date is four.