FDIC shutters five more banks around the country

Federal and state banking regulators shuttered five failed US banks Friday.

The Federal Deposit Insurance Corporation (FDIC), which insured deposits of the over 8000 banks in the US, said that the number of failed US banks is at 22 for this year.

FDIC acting Chairman Martin Gruenberg said earlier in the year that he expects about 50 to 60 banks to be closed in the United States this year, said the Associated Press.

Many of the banks fail due to bad loans that cannot be repaid by customers.

This week's failed banks were located in Maryland, Minnesota, South Carolina and California.

According to Reuters, HarVest Bank and  Bank of the Eastern Shore, both in Maryland were shut down.

According to the Wall Street Journal, California had its first bank failure of the year with the Palm Desert National Bank of Palm Desert, Calif.

Pacific Premier Bank agreed to take on Palm Desert's deposits and most of its assets, said the Lompoc Record.

The Bank of the Eastern Shore, was the only one of the five banks that was taken over by the FDIC, which created the Deposit Insurance National Bank of Eastern Shore, in order to allow customers to access their money and put it in other banks.

Bank failures reached their peak in 2010 with 157 closed down worth around $23 billion.

Bank failures have slowed since then, with small banks the prime victims.