SAN FRANCISCO (MarketWatch) -- In the biggest number of bank seizures yet on a single day, the Federal Deposit Insurance Corp. and state regulators have shut down two banks in Southern California and one in Georgia.

The FDIC said late Friday that U.S. Bank USB, -1.06% , based in Minneapolis, has acquired the banking operations, including all the deposits, of Downey Savings and Loan Association, F.A., Newport Beach, Calif., and PFF Bank & Trust, Pomona, Calif.

The combined 213 branches of the two organizations will reopen as branches of U.S. Bank.

As of Sept. 30, Downey Savings had total assets of $12.8 billion and total deposits of $9.7 billion. PFF Bank had total assets of $3.7 billion and total deposits of $2.4 billion, according to the FDIC.

In addition to assuming all the deposits from the two California banks, U.S. Bank will purchase virtually all their assets. The FDIC will retain any remaining assets for later disposition.

The FDIC and U.S. Bank entered into a loss share transaction. U.S. Bank will assume the first $1.6 billion of losses on the asset pools covered under the loss share agreement, equal to the net asset position at close. The FDIC will then share in any further losses. Under the agreement, U.S. Bank will implement a loan modification program similar to the one the FDIC announced in August stemming from the failure of IndyMac Bank, F.S.B. of Pasadena, Calif.

U.S. Bank currently has 353 offices in California. Downey Savings and PFF Bank are not affiliated with each other. Downey Savings has 170 branches in California and five in Arizona, and PFF Bank has 38 branches in California.

The FDIC estimates that the cost to the Deposit Insurance Fund for Downey Savings will be $1.4 billion and $700 million for PFF Bank. U.S. Bank's acquisition of all the deposits of the two institutions was the "least costly" option for the FDIC's DIF compared to alternatives, the FDIC said in a press release.

These were the 21st and 22nd banks to fail in the U.S. this year, and the fourth and fifth banks to close in California.

Earlier on Friday, the FDIC and Georgia regulators announced the seizure of Loganville, Ga.-based The Community Bank. It was the 20th bank failure so far this year amid the ongoing financial crisis.

All of The Community Bank's deposits have been transferred to Tappahannock, Va.-based Bank of Essex, the FDIC said, and all four of The Community Bank's branches will reopen Monday as Bank of Essex.

The Community Bank had total assets of $681 million and total deposits of $611.4 million as of Oct. 17.

Bank of Essex purchased roughly $84.4 million of The Community Bank's assets and paid the FDIC a premium of $3.2 million for the right to assume the failed bank's deposits. The FDIC said it would retain the remaining assets for later disposition.

The FDIC estimated that The Community Bank's failure will cost its Deposit Insurance Fund between $200 million and $240 million. The Community Bank is the third Georgia-based bank to be closed this year.