SATURDAY'S POST

By John Letzing, MarketWatch

SAN FRANCISCO (MarketWatch) -- Banks in Georgia, North Carolina and Kansas were closed by regulators Friday, bringing the total number of failures for the year to 40 as the financial and credit markets continue to claim victims.

Fayetteville, Ga.-based Southern Community Bank was closed, according to the Federal Deposit Insurance Corporation; its deposits have been assumed by Blairsville, Ga.-based United Community Bank.

The FDIC estimated that the failure of Southern Community will cost its deposit-insurance fund $114 million.

Wilmington, N.C.-based Cooperative Bank was also closed, marking the second failure in that state this year. Troy, N.C.-based First Bank has agreed to assume the failed bank's deposits.

The FDIC estimated that the failure of Cooperative Bank will cost its deposit-insurance fund $217 million.

Late Friday, the FDIC said that Anthony, Kan.-based First National Bank of Anthony was also closed by regulators. South Hutchinson, Kan.-based Bank of Kansas has agreed to assume the failed bank's deposits, the regulator said.

The failure of National Bank of Anthony will cost the deposit insurance fund $32.2 million, the regulator said.

I grew up 30 miles from Anthony, Ks. In the 60's these local banks were a main stable of any small rural town. The President of the bank was probably one of the most influential people in the town. Outside of the doctor and a couple of lawyers he made the most money. I can remember parking my 1956 Ford in front of the bank, opening the door and hopping out. I had a call to my house that I needed to come in see some one about being over drawn. Heck I didn't even know what that meant. I did know that having my sister n law as the bank secretary didn't hurt any. After all she was the one who had called my mom. That bank was always busy. It smelled like money and every one looked liked they were setting on a cushion. A another friend of my sister n law always took care of me when I went in. Which wasn't much. I didn't have a lot money any way.

That day was special. I was just about to leave for college in Winfield and was really excited. I had said good bye to all my friends that were still in town, had packed my car and was heading east to start my college career. That, however, will wait for another time. Hello I told my sister n law. Hello I told her friend. I understand I am being called in for a scolding.

Well, they all laughed out loud. They were waiting for me and came around the counter and out of the offices and hugged me and gave me kisses. Women only on the kisses. We all laughed and had a fine time. It was then that the president of the bank came out and every thing stopped. He had a scowl on his face and looked like he could eat an alligator. He came up to me and a just looked down and suddenly smiled as he shook my hand. We are going to miss you Lee. The town has enjoyed watching you grow up and want you to know that we will always be proud of you. But don't, don't write a check if have no money in the bank. Every one broke out in laughter again.

That bank is gone with a lot of things and people in my home town. But local banks in small communities still are the life line of people that live there. I just wonder if anyone in Washington really knows that they're the ones to big to fail. Shad does as he is waging his tail and licking my face. I just cry a little bit.