After an year of staggering number of bank collapses, the U.S. has seen its first failure in 2010, with regulators shutting down the Washington-based Horizon Bank.

Ravaged by the financial meltdown, as many as 140 banks went belly up in 2009 last year, the highest in 18-years.

Most of the small and medium banks are seeing increased defaults in the wake of high number of unemployed people.

According to the Federal Deposit Insurance Corporation (FDIC), which is often appointed as the caretaker of failed banks, Horizon Bank was closed down on January 8, 2010.

The failure is expected to cost the FDIC close to $540 million.

As on September 30, 2009, Horizon Bank had assets worth $1.3 billion and deposits to the tune of $1.1 billion.

Bogged down by the financial turmoil, nearly 12 banks on an average collapsed last year. The count of 140 failures is the highest since the savings and loan crisis claimed 181 banks in 1992.

Going by the FDIC data, 156 banks have been shut down ever since Lehman Brothers went bankrupt in September 2008.

The American economy is slowly recovering with better GDP growth and slowing pace of job cuts.

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