TD Bank acquires three area failed banks

Historic City News business reporters learned today of three local area bank failures according to announcements received from the Federal Deposit Insurance Corporation and the assumptor, TD Bank.

In the assumption agreement, certain assets and liabilities of Riverside National Bank of Florida, First Federal Bank of North Florida and AmericanFirst Bank have been acquired from the Federal Deposit Insurance Corporation — effective immediately.

TD Bank, based in Wilmington, Delaware, is a wholly-owned subsidiary in the TD Bank Financial Group (TSX and NYSE:TD).

“These transactions, combined with the success of our U.S. franchise, put us in an even stronger position as we continue to build the first truly North American bank,” said Ed Clark, President and CEO, TD Bank Financial Group. “We’re extremely pleased with these acquisitions. They add quality stores to our existing retail network in target markets, allow us to accelerate our organic growth in Florida by five years, and come with limited downside credit risk. Simply put, they are a win-win for our customers and shareholders alike.”

TD Bank has entered into a purchase and assumption agreement with the FDIC, covering Riverside’s 58 branches in central Florida and adding to TD Bank’s already growing network. Separate agreements also cover First Federal’s eight locations and AmericanFirst’s three locations. In addition, TD Bank will gain a total of 80 Automated Teller Machines (ATMs) as a result of these transactions.

“These acquisitions give us an even stronger footprint in the key, fast-growing Florida market, increasing our presence to about 100 locations,” said Bharat Masrani, President and CEO, TD Bank. “We’re pleased to be involved in these transactions, which not only help expand our presence in the U.S. but also allow us to work with the FDIC in its mission to maintain stability and public confidence in the U.S. financial system.”

“These acquisitions present a significant opportunity to grow our business in a short time frame and in a cost-effective way,” said Mr. Masrani. “They also demonstrate our commitment to Florida as we give more customers in this exciting market the opportunity to experience America’s Most Convenient Bank.”

Key highlights of these transactions:

• Advances current de novo store growth strategy
• Adds quality stores in target markets
• Gains about 40 locations for future stores
• Limited downside credit risk
• No material earnings or capital impact
• Purchase of $3.8 billion in assets, including loans of $2.1 billion, all of which are covered by a loss-share agreement
• $3.1 billion in deposits assumed
• The FDIC covers 50% of loan losses up to the following thresholds and then covers 80% in excess of these thresholds:
— Riverside National Bank of Florida: $442 million
— First Federal Bank of North Florida: $58 million
— AmericanFirst Bank: $18 million

The deposits of the former customers of Riverside, First Federal and AmericanFirst will continue to be insured by the FDIC up to the insurance limit. Customers can continue to bank at these locations and will be served by the same friendly teams. Customers can continue to access their money by writing checks, using ATMs or using their debit cards. Checks drawn on Riverside, First Federal and AmericanFirst will continue to be processed and loan customers should continue to make their payments as usual. TD is one of the largest and most respected financial institutions in North America and customers should feel confident that their bank deposits with TD Bank are both safe and secure.

Customers of Riverside, First Federal and AmericanFirst who have questions about this transaction can call TD Bank toll-free at 1-888-751-9000.

“These transactions will provide stability for the customers of Riverside, First Federal and AmericanFirst, whose savings are now secured by the financial strength and stability of TD, one of a handful of NYSE-listed banks rated triple-A,” added Mr. Masrani. “We look forward to WOW!ing existing and potential customers with our legendary customer experiences and to welcoming Riverside, First Federal and AmericanFirst employees to the TD family.”

For more information regarding this transaction please go to to see the investor relations presentation.

About TD Bank Financial Group

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group (TDBFG). TDBFG is the sixth largest bank in North America by branches and serves more than 18 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Insurance; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking, including TD Bank, America’s Most Convenient Bank; and Wholesale Banking, including TD Securities. TDBFG also ranks among the world’s leading online financial services firms, with more than 6 million online customers. TDBFG had $567 billion in assets on January 31, 2010. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.

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