WASHINGTON (Reuters) - Bank regulators closed four small banks on Friday, bringing the number of failures so far this year to 68 as the struggling economy and falling home prices take their toll on financial institutions.

The Federal Deposit Insurance Corp estimated the four closures would cost its deposit fund a total of about $215.7 million.

In 2008, 25 U.S. banks were seized by officials, up from only 3 in 2007.

During the current financial crisis, Seattle-based lender Washington Mutual became the biggest bank to fail in U.S. history. It was closed in September 2008 after losses from soured mortgages and liquidity problems.

The FDIC also has a running tally of problem banks that its examiners closely monitor. At the end of the first quarter, 305 undisclosed institutions were on that list.

Friday’s closures included:

* Peoples Community Bankcorp Inc PCBI.O of West Chester, Ohio, which had $705.8 million in assets and about $598.2 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $129.5 million.

The FDIC said First Financial Bankcorp FFBC.O of Hamilton, Ohio agreed to assume the insured deposits of Peoples Community Bank, whose 19 branches will reopen on Monday as branches of First Financial Bank. The deal also included First Financial and the FDIC entering into a loss-share transaction on about $657.6 million in Peoples' assets.

* First BankAmericano, Elizabeth, New Jersey, which had $166 million in assets and $157 million in deposits. The failure is expected to cost the deposit insurance fund an estimated $15 million.

The FDIC said Crown Bank of Brick, New Jersey agreed to assume the insured deposits of First BankAmericano, whose six branches will reopen on Monday as branches of Crown Bank.

* Integrity Bank of Jupiter, Florida, which had $119 million in assets and $102 million in deposits. The failure is expected to cost the deposit insurance fund an estimated $46 million.

The FDIC said Stonegate Bank SGBK.OB of Fort Lauderdale, Florida agreed to assume the insured deposits of Integrity Bank, whose lone branch will reopen on Monday as a branch of Stonegate Bank. The deal also included Stonegate's agreement to buy about $52 million in assets, with the FDIC keeping the remaining assets for later disposition.

* First State Bank of Altus in Altus, Oklahoma had $103.4 million in assets and $98.2 million in deposits. The failure is expected to cost the deposit insurance fund an estimated $25.2 million.

The FDIC said Herring Bank of Amarillo, Texas agreed to assume the insured deposits of First State Bank of Altus, whose branches will reopen on Monday as branches of Herring Bank. The deal also includes Herring Bank buying about $64.4 million in assets, with the FDIC keeping the remaining assets for later disposition.

Customers of all four failed banks can access their money over the weekend by check, teller machine or debit card, the FDIC said.