Seven Banks Fail

Regulators closed seven Friday, bringing the total number of failed U.S. banks and savings and loan associations during 2009 to 64.

Four of the failed banks were included in TheStreet.com's recent list of 89 undercapitalized banks and thrifts. Twenty-two of the undercapitalized institutions listed on May 28 have failed so far.

The New York State Banking Department took over Waterford Village Bank of Clarence, N.Y. and appointed the Federal Deposit Insurance Corp. receiver. The FDIC sold all of the failed bank's deposits and branches to Evans Bank of Angola, N.Y., a subsidiary of Evans Bancorp(EVBN).

The Georgia Department of Banking and Finance then closed the six banks held by Security Bank Corp(SBKC) of Macon, Ga. The FDIC was appointed receiver and sold the deposits and branches of all six failed banks to State Bank and Trust Co. of Pinehurst, Ga.

All previous bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive Bank Failure Map.

Georgia continues to lead all states with 22 bank or thrift failures during 2008 and 2009, followed by California and Illinois with 13 each, and then Florida with five and Nevada with four.

Large bank holding companies that have acquired failed institutions during 2008 and 2009 include J.P. Morgan Chase(JPM), which acquired Washington Mutual, the largest-ever bank or thrift to fail in the U.S.; SunTrust Banks(STI); Regions Financial(RF); Fifth Third Bancorp(FITB); U.S. Bancorp(USB); BB&T Corp(BBT); and Zions Bancorporation(ZION).

Waterford Village Bank

TheStreet.com Ratings had assigned Waterford Village Bank an E-minus (Very Weak) financial strength rating in March, which was a downgrade from an E the previous quarter. The institution was undercapitalized under regulatory capital guidelines since the end of the third quarter of 2008.