The total number of bank failures, ever since the recession began, has increased to nine, with regulators announcing the closure of three banks - two in California; and one in Georgia.

The California Department of Financial Institutions announced the closing down of two California banks - County Bank in Merced; and Alliance Bank in Culver City; while the Georgia Department of Banking and Finance closed down FirstBank Financial Services in McDonough, Georgia.

The Federal Deposit Insurance Corp (FDIC) has been named the receiver in all the three cases.

County Bank, with among the highest foreclosure rates, carried out its operations 39 offices. The $1.7 billion in assets and $1.3 billion in deposits of the botched bank will be assumed by Westamerica Bank of San Rafael, California.

Meanwhile, on Monday, five offices of the Alliance Bank will reopen as branches of California Bank & Trust. The Bank had nearly $1.14 billion in total assets and $951 million in total deposits.

As regards the Firstbank, its assets of almost $337 million and deposits of $279 million will be assumed by Regions Bank of Birmingham, Alabama.

At the beginning of this week, the FDIC revised its guesstimate for the cost of US bank failures - expecting losses to its deposit insurance fund to be in excess of $40 billion in the next few years - in the midst of deteriorating industry conditions.