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WASHINGTON (

TheStreet

) -- Regulators shut down two banks in Missouri and one in Kansas Friday, bringing the total number of U.S. bank failures for 2010 to 132.

The three bank failures cost the Federal Deposit Insurance Corp.'s deposit insurance fund a combined $507.8 million.

All three failed banks were previously included in

TheStreet's

Bank Watch List

of

undercapitalized

institutions, based on second-quarter regulatory data provided by SNL Financial.

Security Savings Bank, FSB

The Office of Thrift Supervision closed

Security Savings Bank, FSB

of Olathe, Kan. and appointed the FDIC receiver. The FDIC then sold the failed institution's $508 million in total assets and $397 million in total deposits to

Simmons First National Bank

of Pine Bluff, Ark.

The FDIC agreed to cover 80% of losses on $334 million of the acquired assets. The nine branches of Security Savings Bank, FSB were set to reopen during normal business hours as branches of Simmons First National Bank. The acquiring bank is a subsidiary of

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.

After recording 2009 net losses of $21.4 million -- mainly the result of provisions for loan loss reserves -- and a first-quarter net loss of $6.5 million, Security Savings Bank, FSB slipped to undercapitalized status as of March 31, according to SNL Financial. Its Tier 1 leverage ratio was 4.18% and its total risk-based capital ratio was 5.40%, SNL Financial said.

These ratios need to be at least 5% and 10%, respectively, for most banks and thrifts to be considered

well-capitalized

by regulators. They need to be at least 4% and 8%, respectively, for most institutions to be considered adequately capitalized.

Security Savings Bank, FSB had a net loss of $7.5 million during the second quarter, leaving its two capital ratios at 2.98% and 5.40%, respectively, as of June 30. The institution's ratio of nonperforming assets -- including loans past due 90 days or in nonaccrual status and repossessed real estate -- made up 9.37% of total assets.

A cease-and-desist order from the OTS in August 2009 required the thrift to raise significant additional capital by the end of the third quarter of 2009. In the current environment, it is very difficult for most troubled community banks to attract outside investors or a merger partner since investors and other banks are probably better off picking up failed banks with FDIC loss-sharing guarantees.

The FDIC estimated the cost to the deposit insurance fund from Security Savings Bank, FSB's failure would be $82.2 million.

WestBridge Bank and Trust Company

State regulators in Missouri took over

WestBridge Bank and Trust Company

of Chesterfield. The FDIC was appointed receiver and sold the failed bank's $92 million in total assets and $73 million in total deposits to

Midland States Bank

of Effingham, Ill. The FDIC agreed to share in losses on $73 million of the acquired assets. The failed bank's office was scheduled to reopen as a branch of Midland States Bank on Monday. The FDIC estimated the cost of the bank failure would be $18.7 million.

WestBridge Bank and Trust was established in February 2006 and had been losing money on soured loans since the fourth quarter of 2007 as it suffered from the real estate downturn.

This was Midland State Bank's second acquisition of a failed institution during this credit cycle. Midland picked up

Strategic Capital Bank

of Champaign, Ill. in May 2009.

Premier Bank

The largest bank to fail on Friday was

Premier Bank

of Jefferson City, Mo., which had roughly $1.2 billion in total assets and $1 billion in total deposits when the Missouri Division of Finance closed it. The FDIC was appointed receiver and sold the failed bank's deposits to

Providence Bank

of Columbia, Mo. Providence Bank also took on about $658 million of the failed bank's assets, with the FDIC retaining the rest for later disposition.

The agency agreed to cover 80% of losses on $409 million of the acquired assets and estimated the cost of Premier Bank's failure to the deposit insurance fund would be $406.9 million. The failed bank's nine branches were scheduled to reopen Saturday as branches of Providence Bank.

Premier Bank had slipped to undercapitalized following a net loss of $18.2 million in the third quarter of 2009 as problem loans mounted. The bank had a very heavy concentration in construction loans and commercial mortgages, and its nonperforming assets ratio was a crippling 25.63% as of June 30.

Thorough Bank Failure Coverage

Florida

leads all states with 25 bank closures this year, followed by 15 in

Illinois

and 14 failures in

Georgia

.

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

TheStreet's

interactive bank failure map:

Image placeholder title

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark gray, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.

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--

Written by Philip van Doorn in Jupiter, Fla.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., 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.