• TD Bank, N.A. Assumes All of the Deposits of AmericanFirst Bank, First Federal Bank of North Florida and Riverside National Bank of Florida
  • April 26, 2010 | Author: Darren M. Cooper
  • Law Firm: Alston & Bird LLP - Washington Office
  • Yesterday, the Florida Office of Financial Regulation closed AmericanFirst Bank, headquartered in Clermont, Florida, the Office of Thrift Supervision closed First Federal Bank of North Florida, headquartered in Palatka, Florida, and the Office of the Comptroller of the Currency closed Riverside National Bank of Florida, headquartered in Fort Pierce, Florida. The FDIC was named receiver for each institution and TD Bank, National Association (N.A.), Wilmington, Delaware, acquired the banking operations, including all the deposits, of all three Florida-based institutions.

    As of December 31, 2009, AmericanFirst Bank had total assets of $90.5 million and total deposits of $81.9 million, First Federal Bank of North Florida had total assets of $393.3 million and total deposits of $324.2 million, and Riverside National Bank of Florida had total assets of $3.42 billion and total deposits of $2.76 billion. Besides assuming all the deposits from the three Florida institutions, TD Bank, N.A. purchased virtually all their assets. The FDIC and TD Bank, N.A. entered into a loss-share transaction on $2.20 billion of the failed institutions' assets. Initially, TD Bank, N.A. and the FDIC will share in the losses on assets on a 50% - 50% basis.

    The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10.5 million for AmericanFirst Bank, $6.0 million for First Federal Bank of North Florida, and $491.8 million for Riverside National Bank of Florida. These were the 44th, 45th, and 46th banks to fail in the nation this year and the seventh, eighth and ninth in Florida.