UPDATE 2-TD Bank buys assets, liabilities of 3 banks from FDIC

* Says buys assets and liabilities of 3 Florida banks

* Says assets and liabilities worth $3.8 bln
(All figures in US dollars)

By Pav Jordan

TORONTO, April 16 (BestGrowthStock) – Toronto-Dominion Bank (TD.TO: )
(TD.N: ), Canada’s No. 2 bank, said late Friday it acquired
assets and liabilities of three troubled Florida banks worth
$3.8 billion from the Federal Deposit Insurance Corp (FDIC).

Toronto-Dominion, Canada’s No. 2 bank, said it acquired the
assets and liabilities from Riverside National Bank of Florida,
First Federal Bank of North Florida and AmericanFirst Bank from
the FDIC, effective immediately.

The acquisitions build an already strong presence for the
Canadian bank in the northeastern United States, and secure its
position in the lucrative Florida market with about 100
locations in the sunny state.

“We are now a player in Florida,” Ed Clark, who heads
Canada’s second-largest bank, told Reuters in an interview
after the acquisitions were announced.

Clark said the acquisitions will make his bank the No. 9
player in the Florida market, and shave five years off from
what it would have taken Toronto Dominion to grow to that size
organically in the state.

The new TD assets include loans of $2.1 billion, TD Bank
said in a statement.

FDIC deals offer greater risk certainty because acquiring
banks can pick up deposits at relatively low or zero premiums
and also be shielded from toxic assets.

Under a purchase and assumption agreement with the FDIC, TD
is shielded from a portion of potential loan losses, the bank
said.

The FDIC covers 50 percent of loan losses up to $518
million across the three banks, Clark said.

FDIC-assisted deals have turned very lucrative since last
year with rising bank failures.

The deals can often add to the buyer’s earnings immediately
and include a loss-sharing agreement with the regulators.

Clark said he had no plans to alter Toronto-Dominion’s
stated strategy of seeking U.S. acquisitions of banks with
assets under $10 billion while the U.S. economy regains its
health.

Shares of the company closed at C$76.13 Friday on the
Toronto Stock Exchange. Its New York-listed shares closed at
$75.13.

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(Reporting by Aftab Ahmed in Bangalore and Pav Jordan in
Toronto; Editing by Unnikrishnan Nair)
([email protected]; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5828; Reuters Messaging:
[email protected]))

UPDATE 2-TD Bank buys assets, liabilities of 3 banks from FDIC