WASHINGTON ( TheStreet) -- Federal and state regulators shuttered two banks Friday, bringing this year's tally of bank failures to 25.

One of the failed institutions, Legacy Bank of Milwaukee, had previously been included in TheStreet's Bank Watch List of undercapitalized institutions, based on fourth-quarter regulatory data provided by SNL Financial.

The First National Bank of Davis

The Office of the Comptroller of the Currency closed The First National Bank of Davis, Okla., saying the failed institution had "experienced substantial dissipation of assets and earnings due to unsafe and unsound practices," and had "incurred losses that depleted its capital and there is no reasonable prospect that the bank will become adequately capitalized without Federal assistance."

The failed institution has $90.2 million in total assets and unlike nearly all banks that have failed recently, wasn't previously included in TheStreet's Bank Watch List.

In fact, First National Bank of Davis appeared to be in excellent shape as of Dec. 31, having reported $1.2 million in earnings for 2010, for a strong return on average assets of 1.42%. The bank reported a Tier 1 leverage ratio of 8.10% and total risk-based capital ratio of 13.87%, far exceeding the 5% and 10% required for most banks to be considered well-capitalized by regulators.

The bank also reported decent asset quality, as its ratios of nonperforming assets -- including nonaccrual loans, loans past due 90 days or more, and repossessed assets -- made up 2.37% of total assets at the end of 2010.

An OCC spokesman declined to provide TheStreet with additional details on its decision to shut down First National Bank of Davis, other than saying it was a "special situation."

First National Bank of Davis's board of directors dismissed the bank's president W.A. Moore on March 8, according to The Daily Ardmoreite, which cited a board member, who didn't disclose the reason for the firing. Steve Rahill had been named the bank's interim president.

The Federal Deposit Insurance Corp. was appointed receiver and sold the failed bank's $68.3 million in deposits and $28.5 million of its assets to The Pauls Valley National Bank of Pauls Valley, Okla. The agency retained the remaining assets for later disposition and estimated the cost of First National Bank of Davis's failure to the deposit insurance fund would be $26.5 million.

The failed bank's office was set to reopen Saturday as a Pauls Valley National Bank branch.

Legacy Bank

The Wisconsin Department of Financial Institutions shut down Legacy Bank of Milwaukee and appointed the FDIC receiver. As of Dec. 31, the failed bank had $190.4 million in total assets and $183.3 million in deposits. The FDIC sold the deposits and $165.9 million of the failed bank's assets to Seaway Bank and Trust Company of Chicago, retaining the remaining assets for later disposition.

The FDIC agreed to cover 80% of losses on $120 million of the assets acquired by Seaway Bank and Trust, and estimated the cost of Legacy Bank's failure to the deposit insurance corporation would be $43.5 million.

Legacy Bank's office was scheduled to reopen Saturday as a branch of Seaway Bank and Trust.

Thorough Bank Failure Coverage

All bank and thrift closures since the beginning of 2008 are detailed in TheStreet's interactive bank failure map:

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 2008-2011 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.

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