TD Bank Acquires Three Failed Florida Banks

TD Bank said late Friday that it has acquired the banking operations, including all the deposits, of three failed Florida-based banks in a deal assisted by the Federal Deposit Insurance Corp. The deal moves TD from roughly 30 to 100 branches, almost triples its deposits and gives the bank its first Florida presence outside the southeast portion of the state.

TD, a subsidiary of Toronto-based TD Bank Financial Group (NYSE:TD), said it acquired assets and liabilities from Riverside National Bank of Florida of Fort Pierce, Fla., First Federal Bank of North Florida of Palatka, Fla., and AmericanFirst Bank of Clermont, Fla., from the FDIC, effective immediately. In the case of each of the acquired banks, they were closed by their respective chartering authority, and the FDIC was named receiver. The three failed institutions were not affiliated with one another and are expected to tap the FDIC’s deposit insurance fund for $508.3 million.

In the purchase and assumption agreement with the FDIC, TD acquires Riverside-based 58 branches, First Federal’s eight locations and AmericanFirst’s three locations. In addition, TD Bank will gain a total of 80 ATMs from the three banks.

As of Dec. 31, Riverside had total assets of $3.42 billion and total deposits of $2.76 billion; First Federal had total assets of $393.3 million and total deposits of $324.2 million; and AmericanFirst had total assets of $90.5 million and total deposits of $81.9 million. Besides assuming all the deposits, the FDIC said TD will purchase virtually all their assets.

The FDIC said it and TD entered into a loss-share transaction on $2.2 billion of the failed institutions’ assets. Initially, the regulator and TD will equally share in the asset losses. TD said the FDIC will cover 50 percent of loan losses up to the following thresholds and then cover 80 percent in excess of these thresholds: Riverside, $442 million; First Federal, $58 million; AmericanFirst Bank, $18 million.

TD said the deal allows it to advance its growth strategy in Florida with no material earnings or capital impact. TD Bank Financial President and CEO Ed Clark said the deal allows TD to accelerate its organic growth in Florida by five years.

TD Bank will pick up 69 branches in the transaction and $2.1 billion in deposits. On June 30, TD Bank had 28 offices and $1.19 billion in deposits in South Florida and it has opened three locations since then.

The deal gives TD its first Florida branches outside Miami-Dade, Broward and Palm Beach counties. TD predecessor Commerce Bank first entered Florida in 2005 when it bought Palm Beach County Bank and had grown exclusively in the southeast portion of the state. TD bought Commerce in 2008.

Riverside, one of the 20 largest banks in Florida by deposits, has eight branches and $961 million in deposits in St. Lucie County, 14 branches and $541 million in deposits in Brevard County and 14 branches with $420 million in assets in Volusia County. It also has locations in Highlands, Indian River, Lake, Martin, Okeechobee, Palm Beach and Polk counties.

First Federal’s locations are in Putnam and St Johns counties. AmericanFirst has a branch each in Lake, Orange and Osceola counties.

Read more: TD Bank buys Riverside, First Federal, AmericanFirst - Philadelphia Business Journal: