U.S. Bank acquires two California thrift banks

U.S. Bancorp (NYSE: USB) announced today that it had acquired the banking operations of two separate California financial institutions from the Federal Deposit Insurance Corporation.

Federal regulators shut down two big thrifts based in Southern California.

Officials say Downey Savings and Loan, based in Newport Beach, and PFF Bank and Trust of Pomona both fell victim to the acute distress in the California housing market.

It brings the number of U.S. bank failures this year to 22.

The FDIC was appointed receiver of the two thrifts. U.S. Bank, based in Minneapolis, has acquired all the deposits of both.

Also today, Georgia regulators shut down The Community Bank of Loganville, Ga. The FDIC, which was made receiver, says all the bank's deposits and assets will be acquired by Bank of Essex, of Virginia.

There have been 22 bank failures so far this year. That's far more than in the previous five years combined. And more failures are expected.