TD Bank bought three failed Florida-based banks on April 16, with a combined $3.9 billion in assets, among a total of eight bank failures on Friday that brought the total 2010 bank failures to 50.
TD Bank Acquisitions
Riverside National Bank of Florida with $3.42 billion in assets, First Federal Bank of North Florida with $393.3 million in assets and AmericanFirst Bank with $90.5 million in assets, were the three non-affiliated institutions that held $3.1 billion in deposits and 69 offices in Florida – now a part of TD Bank. TD Bank and the FDIC have agreed to an equal split in the losses. The FDIC estimates the three Florida-based bank failures to cost the Deposit Insurance Fund (DIF) more than $500 million.
Five Other Bank Failures
City Bank in Lynnwood, Washington, with $1.13 billion in assets and $1.02 billion in total deposits, was shut down by state regulators with all deposit accounts transferred to Whidbey Island Bank. Whidbey Island Bank paid a 1% premium to assume all deposits and it has also purchased approximately $704.1 million of City Bank’s assets. The estimated cost to the DIF is $323.4 million.
Butler Bank in Lowell, Massachusetts, with $268 million in assets and $233.2 million in total deposits, was closed by state regulators. People’s United Bank purchased all assets and assumed all deposits of the failed bank without paying a premium. The estimated cost to the DIF is $22.9 million.
Lakeside Community Bank in Sterling Heights, Michigan, with $53 million in assets, was shut down without a buyer. Their $52.3 million in deposits will be mailed out in checks to account holders. The estimated cost to the DIF is $11.2 million.
Tamalpais Bank in San Rafael, California, with approximately $628.9 million in assets and $487.6 million in total deposits, was closed with all its deposits assumed by Union Bank, at a 2% premium cost to the FDIC. Union Bank essentially bought all of the failed bank’s assets. The estimated cost to the DIF is $81.1 million.
Innovative Bank in Oakland, California, with $268.9 million in assets and $225.2 million in total deposits, was shut down and has reopened as Center Bank. Center Bank paid the FDIC a premium of 0.5% to assume the failed bank’s deposits and it has also agreed to purchase all of Innovative Bank’s assets. The estimated cost to the DIF is $37 million.
You can see MyBankTracker.com’s complete list of the 2010 bank failures here.