Sherman County Bank of Nebraska fails - U.S. FDIC

WASHINGTON Feb 13 (Reuters) - Bank regulators closed Sherman County Bank of Nebraska on Friday, the 10th 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 Sherman County Bank had $129.8 million in assets and $85.1 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $28 million.

Heritage Bank of Wood River, Nebraska agreed to assume the insured deposits of Sherman County Bank, whose four branches will reopen on Tuesday as branches of Heritage Bank.

In 2008, 25 banks were seized by officials, up from only 3 in 2007. (Reporting by Roberta Rampton; Editing by Tim Dobbyn)