FDIC: Buyers for 7 of 8 Banks; Total Failures at 50

Federal Deposit Insurance Corp.Regulators seized 8 banks this week – a high number even by credit crisis standards – with an overall total of $6.25 billion in assets and $5.1 billion in deposits.
The actions by the Federal Deposit Insurance Corp. takes this year’s total of bank failures to 50, on pace to break last year’s total of 140 collapses, a nearly two-decade high. 
The largest failure was Riverside National Bank of Florida, of Fort Pierce, with $3.42 billion in assets and $2.76 billion in deposits.
Toronto-Dominion, Canada’s No. 2 bank, acquired the assets and liabilities from Riverside and the two other Florida failed banks: First Federal Bank of North Florida and AmericanFirst Bank. The FDIC and TD Bank entered into a loss-share transaction on $2.20 billion of the failed institutions’ assets.
The acquisitions create a big entry into Florida’s market for TD Bank, which already has an established presence in the U.S. Northeast.  The three banks give TD about 70 branches throughout Florida.
The FDIC found buyers for 7 out of the 8 banks. It will cover about $52.3 million in deposits from Lakeside Community Bank, in Sterling Heights, Michigan. 
FDIC Chairman Sheila Bair has said she expects bank failures to peak in the second half of 2010, but likely to surpass last year’s total.
Although the agency’s Deposit Insurance Fund’s balance declined by $38.1 billion during 2009, the “DIF’s liquidity was significantly enhanced” by paid assessments and marketable securities that stood at $66 billion at year’s end,” according to a fourth quarter 2009 report to the FDIC board dated March 3, 2010.
“Hence, the DIF is well positioned to fund resolution activity in 2010 and beyond,” the report said.
 Here’s the most recent list of bank closures from the FDIC:
City Bank, Lynnwood, WA with $1.13 billion in assets and $1.02 billion in deposits was closed. Whidbey Island Bank, Coupeville, WA has agreed to assume all deposits, excluding certain brokered deposits.
Tamalpais Bank, San Rafael, CA with $628.9 million in assets and $487.6 million in deposits was closed. Union Bank, National Association, San Francisco, CA has agreed to assume all deposits, excluding certain brokered deposits.
Innovative Bank, Oakland, CA with $268.9 million in assets and $225.2 million in deposits was closed. Center Bank, Los Angeles, CA has agreed to assume all deposits, excluding certain brokered deposits.
Butler Bank, Lowell, MA with $268.0 million in assets and $233.2 million in deposits was closed. People’s United Bank, Bridgeport, CT has agreed to assume all deposits.
Riverside National Bank of Florida, Fort Pierce, FL with $3.42 billion in assets and $2.76 billion in deposits was closed. TD Bank, National Association, Wilmington, DE has agreed to assume all deposits, excluding certain brokered deposits.
AmericanFirst Bank, Clermont, FL with $90.5 million in assets and $81.9 million in deposits was closed. TD Bank, National Association, Wilmington, DE has agreed to assume all deposits, excluding certain brokered deposits.
First Federal Bank of North Florida, Palatka, FL with $393.3 million in assets and $324.2 million in deposits was closed. TD Bank, National Association, Wilmington, DE has agreed to assume all deposits.
Lakeside Community Bank, Sterling Heights, MI, with $53.0 million in assets and $52.3 million in deposits was approved for payout by the FDIC Board of Directors.

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