Southern Community Bank of Georgia fails-U.S. FDIC

WASHINGTON, June 19 (Reuters) - Bank regulators closed Southern Community Bank of Fayetteville, Georgia, on Friday, the 38th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.

The Federal Deposit Insurance Corp said Southern Community Bank had $377 million in assets and $307 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $253 million.

United Community Bank of Blairsville, Georgia, agreed to assume the insured deposits of Southern Community Bank, whose five branches will reopen on Monday as branches of United Community Bank.

(Reporting by Roberta Rampton) Keywords: FINANCIAL SOUTHERNCOMMUNITY/FAILURE ([e-mail]; + 202 898 8376; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.