8 Banks Closed on April 16

TD Bank Acquires 3 of the Failed Institutions State and federal banking regulators closed eight banks on Friday, April 18.

TD Bank acquired three of the institutions. All but one of the remaining five banks were acquired by other institutions.

These latest closings raise to 56 the number of failed banks and credit unions so far in 2010.

Here are the latest failures:

TD Bank Acquires 3 FL Banks
TD Bank on Friday acquired the banking operations of three separate Florida banking institutions: AmericanFirst Bank, Clermont, which was closed by the Florida Office of Financial Regulation; First Federal Bank of North Florida, Palatka, closed by the Office of Thrift Supervision; and Riverside National Bank of Florida, Fort Pierce, closed by the Office of the Comptroller of the Currency. The three failed institutions were not affiliated with one another.

The branches of the three closed institutions will reopen as branches of TD Bank, N.A. under their normal business hours, including those with Saturday hours. Depositors will automatically become depositors of TD Bank, N.A.

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. will purchase virtually all their assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for AmericanFirst Bank will be $10.5 million; for First Federal Bank of North Florida, $6.0 million; and for Riverside National Bank of Florida, $491.8 million.

Lakeside Community Bank
The FDIC approved the payout of the insured deposits of Lakeside Community Bank, Sterling Heights, Michigan. The bank was closed by the Michigan Office of Financial and Insurance Regulation, which appointed the FDIC as receiver.

The FDIC entered into an agreement with First Michigan Bank, Troy Michigan, to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments.

The FDIC was unable to find another financial institution to take over the banking operations of Lakeside Community Bank. As a result, checks to depositors for their insured funds will be mailed on Monday, April 19th.

As of December 31, 2009, Lakeside Community Bank had approximately $53.0 million in total assets and $52.3 million in total deposits.

The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $11.2 million.

Butler Bank
Butler Bank, Lowell, Massachusetts, was closed by the Massachusetts Division of Banks, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with People's United Bank, Bridgeport, Connecticut, to assume all of the deposits of Butler Bank.

The four branches of Butler Bank were to reopen during normal business hours beginning Saturday as branches of People's United Bank. Depositors of Butler Bank will automatically become depositors of People's United Bank.

As of December 31, 2009, Butler Bank had approximately $268.0 million in total assets and $233.2 million in total deposits. People's United Bank did not pay the FDIC a premium to assume all of the deposits of Butler Bank. In addition to assuming all of the deposits, People's United Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $22.9 million.

Innovative Bank
Innovative Bank, Oakland, California, was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Center Bank, Los Angeles, California, to assume all of the deposits of Innovative Bank.

The four branches of Innovative Bank were to reopen during normal business hours beginning Saturday as branches of Center Bank. Depositors of Innovative Bank will automatically become depositors of Center Bank.

As of December 31, 2009, Innovative Bank had approximately $268.9 million in total assets and $225.2 million in total deposits. Center Bank paid the FDIC a premium of 0.5 percent to assume all of the deposits of Innovative Bank. In addition to assuming all of the deposits, Center Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $37.8 million.

Tamalpais Bank
Tamalpais Bank, San Rafael, California, was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Union Bank, National Association, San Francisco, California, to assume all of the deposits of Tamalpais Bank.

The seven branches of Tamalpais Bank will reopen on Monday as branches of Union Bank, N.A. Depositors of Tamalpais Bank will automatically become depositors of Union Bank, N.A.

As of December 31, 2009, Tamalpais Bank had approximately $628.9 million in total assets and $487.6 million in total deposits. Union Bank, N.A. paid the FDIC a premium of 2.0 percent to assume all of the deposits of Tamalpais Bank. In addition to assuming all of the deposits, Union Bank, N.A. agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $81.1 million.

City Bank
City Bank, Lynnwood, Washington, was closed by the Washington Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Whidbey Island Bank, Coupeville, Washington, to assume all of the deposits of City Bank.

The eight branches of City Bank were to reopen during normal business hours beginning Saturday as branches of Whidbey Island Bank. Depositors of City Bank will automatically become depositors of Whidbey Island Bank.

As of December 31, 2009, City Bank had approximately $1.13 billion in total assets and $1.02 billion in total deposits. Whidbey Island Bank paid the FDIC a premium of 1.0 percent to assume all of the deposits of City Bank. In addition to assuming all of the deposits, Whidbey Island Bank agreed to purchase approximately $704.1 million of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $323.4 million.





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