NEW YORK - October 5, 2009 - Three regional banks were closed by regulators on Friday evening, bringing the 2009 tally to 98.

Warren Bank, based in Warren, Michigan, Jennings State Bank in Spring Grove, Minnesota, and Southern Colorado National Bank, Pueblo, Colorado were the latest to go down.

Customers of all three banks 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.

The Huntington National Bank in Columbus, Ohio will assume all of Warren's $501 million deposits, according to the FDIC. The bank will also purchase $83 million of the failed bank's $538 million in assets; the FDIC will retain the remainder for later disposition.

Warren Bank, the second bank failure in Michigan this year, will cost the FDIC an estimated $275 million.

Central Bank of Stillwater, Minnesota will assume all of Jennings State Bank's $52.4 million deposits, according to the FDIC, and will purchase "essentially all" of the failed bank's $56.3 million in assets.

The FDIC said it entered a loss-share agreement with the acquiring bank for $37.7 million of the failed bank's assets. Such agreements are becoming more commonplace, as the FDIC seeks leverage to convince stronger banks to take on failing institutions' risky asset portfolios.

This is the fourth time a Minnesota financial institution has been closed by regulators during 2009. The closure will cost the FDIC an estimated $11.7 million.

Legacy Bank, Wiley, Colorado will assume all of the deposits of Southern Colorado National Bank's $31.9 million deposits. Legacy also agreed to buy nearly all of the $39.5 million of Southern Colorado's assets.

The FDIC signed a loss-share agreement with Legacy for $25.5 million of the failed Colorado bank's assets.

The closure marks the third bank failure for Colorado this year. The cost to the FDIC will total $6.6 million.