WASHINGTON (August 15, 2009)--Federal regulators have shut down five more banks nationwide including real estate development lender Colonial BancGroup.

The failure of the Alabama-based bank is the biggest this year and is expected to cost the Federal Deposit Insurance Corp. nearly $3 billion.

The FDIC was appointed receiver of the five banks; Colonial, with about $25 billion in assets; Community Bank of Arizona, based in Phoenix; Union Bank, based in Gilbert, Ariz.; Community Bank of Nevada, based in Las Vegas; and Dwelling House Savings and Loan Association, located in Pittsburgh.

Colonial's 346 branches reopened at the normal times starting on Saturday as offices of BB&T.

So far this year, some 77 federally insured banks have collapsed, compared to 25 last year and three in 2007.

The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.