98 U.S. banks failed : the worst financial climate in decades.

Regulators have shut Warren Bank in Warren, Mich., and two small banks in Colorado and Minnesota, boosting the number of failed U.S. banks this year to 98 as loan defaults rise in the worst financial climate in decades.The Federal Deposit Insurance Corp. took over Warren Bank, with about $538 million in assets and $501 million in deposits as of July 31. The Huntington National Bank, based in Columbus, Ohio, agreed to assume the deposits and about $83 million of the assets of the failed bank. The FDIC will retain the remaining assets for later disposition.Warren Bank's six branches will reopen Saturday as offices of Huntington National Bank.The failure of Warren Bank is expected to cost the deposit insurance fund an estimated $275 million.Regulators also shut the much smaller Jennings State Bank, in Spring Grove, Minn. Central Bank of Stillwater, Minn., agreed to assume the bank's $52.4 million in deposits and essentially all the bank's assets, which totaled $56.3 million on July 31.In addition, the FDIC and Central Bank agreed to share losses on about $37.7 million of Jennings State Bank's assets.The FDIC estimates the closing of Jennings State Bank will cost the deposit insurance fund about $11.7 million.Regulators shut a third bank, the Southern Colorado National Bank in Pueblo, Colo. Legacy Bank of Wiley, Colo., agreed to assume the deposits and essentially all the assets of Southern Colorado National Bank. As of Sept. 4, deposits stood at $31.9 million and assets totaled $39.5 million
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