U.S. regulators close 4 banks and a credit union

By Richard Cowan

WASHINGTON (Reuters) - U.S. bank regulators on Friday closed four banks and one credit union as the recession took its toll on financial institutions.

"The FDIC has been consistent in our public statements that there will be an increase in activity in bank failures over the course of this year and the announcements tonight reflect that," Federal Deposit Insurance Corp spokesman Andrew Gray said.

Officials have seized 29 banks so far this year. That is up from 25 U.S. banks in all of 2008 and three in 2007.

"There's been little to no disruption for insured depositors," Gray said, declining to estimate how many more bank failures loom.

FDIC and the National Credit Union Administration announced the closings of:

* Eastern Financial Florida Credit Union, headquartered in Miramar, Florida. The National Credit Union Administration was appointed conservator by the Florida Office of Financial Regulations.

The credit union has about $1.6 billion in assets and about 200,000 members. Space Coast Credit Union of Melbourne, Florida, will temporarily manage operations.

* First Bank of Beverly Hills in Calabasas, California. The bank had about $1.5 billion in assets and $1 billion in deposits. FDIC said it had approved the payout of insured deposits. The California Department of Financial Institutions appointed the FDIC as the receiver. The failure is expected to cost the FDIC insurance fund about $394 million.