Another Friday, another round of bank closings

Regulators shut down three more banks Friday - two in California and one in Georgia.

Once again, the failed banks' deposits were taken over by financial institutions that have either received taxpayer capital through the Treasury Department's Troubled Asset Relief Program or been approved for funding.

Of the nine banks that have been closed since the start of the year, seven have been absorbed by companies whose own balance sheets were strengthened with money from the $700 billion TARP initiative.

The California Department of Financial Institutions shut down Alliance Bank, of Culver City and appointed the Federal Deposit Insurance Corp. as receiver. The FDIC enlisted California Bank & Trust of San Diego to take over the branches and deposits.

California Bank & Trust is a subsidiary of Zions Bancorporation, a Utah holding company that got $1.3 billion in TARP money in November, when it sold preferred stock and warrants to the government. California Bank & Trust agreed to buy $1.12 billion of Alliance Bank's $1.14 billion in deposits, at a discount of $9.9 million.

The failed bank's five offices will reopen Monday as California Bank & Trust branches.

The California Department of Financial Institutions also closed County Bank, based in Merced. Westamerica Bancorporation, of San Rafael, Calif., agreed to assume all of County Bank's $1.3 billion in deposits and buy all of its assets.

County Bank's 39 branches will reopen as Westamerica branches. Westamerica said Friday that it had been approved for $83 million in taxpayer capital through TARP.

The bank also negotiated a loss-sharing agreement with the FDIC on County Bank's $1.2 billion in loans. Under the deal, Westamerica will be responsible for 20 percent of County Bank's first $269 million in losses on loans and repossessed collateral. The FDIC will cover the other 80 percent. If losses top $269 million, Westamerica will be responsible for 5 percent of the additional amount and the FDIC will cover the rest.

Georgia regulators on Friday shut down FirstBank Financial Services, in McDonough, 30 miles southeast of Atlanta. Regions Financial Corp., of Birmingham, Ala., agreed to assume FirstBank's $279 million in deposits and purchase $17 million of its assets. FirstBank's four branches will reopen Saturday as Regions Bank branches.

Regions Financial got $3.5 billion in TARP money in November.