WASHINGTON (

TheStreet

) -- Banks failed in Illinois, Minnesota and Utah on Friday, bringing the total of number of failed banks this year to four.

In one of Friday's failures, the Federal Deposit Insurance Corp. was unable to find a buyer for the shuttered institution.

All three failed institutions had been previously assigned E-minus (Very Weak) financial strength ratings by

TheStreet.com Ratings

, and all three were included in

TheStreet.com's

list of

undercapitalized banks and thrifts

.

The Illinois Division of Banking closed

Town Community Bank & Trust

of Antioch, Ill. and appointed the Federal Deposit Insurance Corp. receiver. The FDIC arranged for

First American Bank

of Elk Grove Village, Ill., to assume the failed bank's $68 million in deposits and most of its $70 million in assets, with the FDIC agreeing to share in losses on $56 million of the required assets.

The FDIC estimated the cost to its deposit insurance fund would be $17.8 million. Town Community's office was to reopen during normal business hours Saturday as a branch of First American Bank.

Town and Country had been considered undercapitalized since the end of 2008, after very rapid expansion over the previous two years, with most new assets concentrated in commercial and industrial loans, funded mainly with brokered deposits. The loan portfolio quickly soured and most of the bank's capital was wiped out by Sep. 30.

Elsewhere, Minnesota regulators shut down

St. Stephen State Bank

of St. Stephen, Minn. The FDIC was appointed receiver and arranged for

First State Bank of St. Joseph

of St. Joseph, Minn., to take over all of the failed institution's deposits and assets. Total assets were $24.7 million, and the FDIC agreed to share in losses on $20.4 million, estimating the cost to its insurance fund would be $7.2 million. St. Stephen's two offices were set to reopen Saturday as First State Bank branches.

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The failed bank's loan losses were also concentrated in its commercial and industrial portfolio.

Lastly, the Utah Department of Financial Institutions shuttered

Barnes Banking Company

of Kaysville, Utah. The FDIC was unable to find a buyer for the institution and arranged to mail checks to retail CD and IRA depositors for their insured balances. The FDIC planned to arrange to pay insured brokered CD balances directly to brokers. Customers with brokered deposits were advised to contact their brokers directly.

The FDIC created the Deposit Insurance National Bank of Kaysville to operate temporarily, to allow customers with insured funds in savings and checking accounts to move their balances to other institutions by Feb. 12.

Zions First National Bank

(a subsidiary of

Zions Bancorp

(ZION) - Get Report

) was to provide operational management for the deposit insurance bank.

The agency estimated that uninsured deposits totaled $100,000, but advised that this figure would be likely to change once additional information was received from customers.

Barnes Banking Company had $828 million in total assets when it failed, and the FDIC estimated the cost to the insurance fund would be $271.3 million.

After charging off $32 million in loans during the first three quarters of 2009, Barnes Banking's nonperforming assets, including nonaccrual loans and repossessed real estate, made up 27.7% of total assets as of Sep. 30. Most of the losses came from the bank's construction loan portfolio.

Ongoing Bank Failure Coverage

All previous bank and thrift failures since the beginning of 2008 are detailed in

TheStreet.com's

interactive bank failure map:

The bank failure map is color-coded, with states having the largest number of failures highlighted in red, and states with no failures in gray. By hovering your mouse over a state you can see the combined totals for that state. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

Georgia

leads all states with 30 bank or thrift failures from 2008 through Friday, followed by

Illinois

with 23,

California

with 22 and

Florida

with 16.

Large holding companies acquiring failed institutions during 2008 and 2009 have included

J.P. Morgan Chase

(JPM) - Get Report

, which acquired Washington Mutual, the largest-ever bank or thrift to fail in the U.S;

U.S. Bancorp

(USB) - Get Report

;

SunTrust Banks

(STI) - Get Report

;

Regions Financial

(RF) - Get Report

;

Fifth Third Bancorp

(FITB) - Get Report

; Zions Bancorp;

PNC Financial

(PNC) - Get Report

; and

BB&T

(BBT) - Get Report

.

Free Financial Strength Ratings

Although the total uninsured deposits at Barnes Banking Company were estimated to be a relatively low $100,000, this probably doesn't seem like a small amount to the customers taking losses. Customers with CD deposits made through brokers will also be inconvenienced, as they may wait a few weeks for their brokers to be paid by the FDIC.

The FDIC's temporary increase of the basic limit on individual deposit insurance coverage to $250,000 from $100,000 has been extended through 2013. While the agency also temporarily waived all deposit insurance limits for business transaction accounts (checking accounts), the insurance limit on these accounts are scheduled to go back to the $100,000 insurance limit on June 30.

It will be more important than ever for business and municipal entities such as school districts to carefully monitor the health of their banks. It's very easy to have more than $100,000 of somebody else's money flowing through a business account.

TheStreet.com Ratings

issues independent and very conservative financial strength ratings on each of the nation's 8,500 banks and savings and loans. They are available at no charge on the

Banks & Thrifts Screener

.

In addition, the Financial Strength Ratings for 4,000 life, health, annuity, and property/casualty insurers are available on the

Insurers & HMOs Screener

.

TheStreet.com Ratings

also provides award-winning stock ratings, which are available on the

Stock Ratings Screener

.

TheStreet.com Ratings

was ranked the No. 1 independent stock selector during the market meltdown by BNY ConvergEx Group's BNY Jaywalk.

--

Written by Philip van Doorn in Jupiter Fla.

Philip W. van Doorn joined TheStreet.com Ratings., Inc., in February 2007. He is the senior analyst responsible for assigning financial strength ratings to banks and savings and loan institutions. He also comments on industry and regulatory trends. Mr. van Doorn has fifteen years experience, having served as a loan operations officer at Riverside National Bank in Fort Pierce, Florida, and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a Bachelor of Science in business administration from Long Island University.