WASHINGTON ( TheStreet) -- State regulators closed banks in Michigan, Minnesota and Colorado Friday, bringing the total number of failed banks and thrifts this year to 98. The Michigan Office of Financial and Insurance Regulation shuttered Warren Bank of Warren, Mich. and appointed the Federal Deposit Insurance Corporation receiver. The FDIC then sold the failed institution's branches and deposits to Huntington National Bank, the main subsidiary of Huntington Bancshares ( HBAN). Minnesota regulators took over Jennings State Bank of Spring Grove. The FDIC was appointed receiver and sold the the failed bank's deposits and nearly all of its assets to Central Bank of Stillwater, Minn. Later on Friday the Office of the Comptroller of the Currency shut down Southern Colorado National Bank of Pueblo and appointed the FDIC receiver. The FDIC sold the failed bank's deposits and almost all of its assets to Legacy Bank of Wiley, Colo. All three failed banks had been assigned E-minus (Very Weak) financial strength ratings by TheStreet.com Ratings. The three failed institutions were also included in TheStreet.com's list of undercapitalized banks and thrifts, based on second-quarter data. They were also among 89 institutions on a previous list published by TheStreet.com in late May. Out of that list, 45 banks and thrifts have failed.
Like so many of the banks to fail during 2008 and 2009, Warren Bank failed because losses from soured construction and land-development loans depleted its capital. Net losses for 2008 totaled $19.8 million and the bank lost another $23 million during the first half of 2009. Warren Bank had $538 million in total assets and $501 million in deposits. Its six branches were set to reopen Saturday as branches of Huntington National Bank. In addition to the deposits, Huntington acquired $83 million of the failed bank's assets, with the FDIC retaining the rest for later disposition. The agency estimated the cost to its insurance fund would be $275 million. This was one of the mostly costly failures in the current cycle, based on percentage of total assets, and reflected the bank's high concentration in construction and development loans, as well as commercial real estate loans.