By Corbett B. Daly

WASHINGTON, July 30 (Reuters) - U.S. bank failures reached
108 so far in 2010 on Friday as regulators seized five small
banks in the Pacific Northwest and the Southeast, none publicly
traded.

Bank failures are expected to peak this quarter, with the
industry slowly recovering from large portfolios of bad loans,
many tied to commercial real estate.

The banks seized on Friday were LibertyBank of Eugene,
Oregon; The Cowlitz Bank of Longview, Washington; Coastal
Community Bank of Panama City Beach, Florida; Northwest Bank &
Trust of Acworth, Georgia; and Bayside Savings Bank of Port
Saint Joe, Florida, according to the Federal Deposit Insurance
Corp.

The five banks would cost the agency's deposit insurance
fund about $335 million, the FDIC said.

The largest of the five banks was LibertyBank with 15
branches and about $768.2 million in total assets and $718.5
million in total deposits. The smallest was Bayside Savings
Bank with just two branches and $66.1 million in total assets
and $52.4 million in deposits.

Although failures are still occurring at a rapid pace, it
is mostly smaller institutions that have been collapsing
recently.

The biggest bank failure of the crisis was Washington
Mutual, which had $307 billion in assets when it was seized in
September 2008.

The annual level of bank failures has not reached the
levels during the savings and loan crisis, when 534
institutions were seized in 1989 alone.

In the current crisis, the problems dogging the banking
industry have migrated from home mortgages to commercial real
estate, especially for community banks that tend to have higher
concentrations of commercial real estate loans.

Regulators have not publicly revealed estimates of how many
bank failures are still to come, but the FDIC has said it
expects the cost to hit $60 billion from 2010 through 2014.

(Additional reporting by Karey Wutkowski; Editing by
Jonathan Thatcher)