US regulators have seized eight more banks with assets totalling more than $6 billion, raising the tally of failed banks in the country, mostly smaller banks, so far in 2010 to 51.
The Federal Deposit Insurance Corporation (FDIC) on Friday listed City Bank of Lynnwood of Washington, Tamalpais Bank of San Rafael in California, First Federal Bank of North Florida in Palatka, AmericanFirst Bank of Clermont and Riverside National Bank both of Florida, Butler Bank of Lowell in Massachusetts, Lakeside Community Bank of Sterling Heights in Michigan and Innovative Bank of Oakland in California, as the failed banks whose assets have been seized.
Canada's TD Bank bought the assets and liabilities of three of the troubled Florida banks for about $3.8 billion from the FDIC, in its bid to speed up its US expansion.
TD Bank, National Association (N.A.), Wilmington, Delaware, acquired the banking operations, including all the deposits, of three Florida-based institutions - First Federal Bank, AmericanFirst Bank and Riverside National Bank.
As of 31 December 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.
To protect depositors, the Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with TD Bank, N.A.