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Riverside Bank closed, TIB Bank, Naples to assume all deposits

3 min read

Riverside Bank of the Gulf Coast, was closed Friday, Feb. 13, 2009 by the Florida Office of Financial Regulation, which appointed the FEderal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with TIB Bank, Naples, Florida, to assume all of the deposits of Riverside Bank.

Due to the observance of President’s Day, Riverside’s nine offices will reopen on Tuesday, Feb. 17 as branches of TIB Bank. Depositors of Riverside Bank will automatically become depositors of TIB Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until TIB Bank can fully integrate the deposit records of Riverside Bank.

Today, depositors of Riverside Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of Dec. 31, 2008, Riverside Bank had total assets of approximately $539 million and total deposits of $424 million. TIB Ban agreed to pay the FDIC a premium of 1.3 percent.

TIB Bank will not assume $142.6 million in brokered deposits held by Riverside Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

Customers who have questions about the Riverside/TIB transaction can call the FDIC toll free at 1-800-823-5028. This phone number will be operational from 8 a.m. to 8 p.m. EST.

Customers who would like more information about the transaction also can visit the FDIC’s Web site at fdic.gov/bank/individual/failed/riverside.html

In addition to assuming all of the deposits of Riverside Bank, TIB Bank agreed to purchase approximately $125 million in assets, comprised mainly of cash, cash equivalent and marketable securities. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $201.5 million. TIB Bank’s acquisition of all of the deposits was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives. Riverside Bank is the eleventh bank to fail in the nation this year. The last bank to fail in Florida was Ocala National Bank on Jan. 30, 2009.

Riverside Bank of the Gulf Coast is not affiliated with either Riverside National Bank of Florida, Fort Pierce or with Riverside Bank of Central Florida, Winter Park.

Information was provided by the Federal Deposit Insurance Corporation.

Riverside Bank closed, TIB Bank, Naples to assume all deposits

3 min read

Riverside Bank of the Gulf Coast, was closed Friday, Feb. 13, 2009 by the Florida Office of Financial Regulation, which appointed the FEderal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with TIB Bank, Naples, Florida, to assume all of the deposits of Riverside Bank.

Due to the observance of President’s Day, Riverside’s nine offices will reopen on Tuesday, Feb. 17 as branches of TIB Bank. Depositors of Riverside Bank will automatically become depositors of TIB Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until TIB Bank can fully integrate the deposit records of Riverside Bank.

Today, depositors of Riverside Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of Dec. 31, 2008, Riverside Bank had total assets of approximately $539 million and total deposits of $424 million. TIB Ban agreed to pay the FDIC a premium of 1.3 percent.

TIB Bank will not assume $142.6 million in brokered deposits held by Riverside Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

Customers who have questions about the Riverside/TIB transaction can call the FDIC toll free at 1-800-823-5028. This phone number will be operational from 8 a.m. to 8 p.m. EST.

Customers who would like more information about the transaction also can visit the FDIC’s Web site at fdic.gov/bank/individual/failed/riverside.html

In addition to assuming all of the deposits of Riverside Bank, TIB Bank agreed to purchase approximately $125 million in assets, comprised mainly of cash, cash equivalent and marketable securities. The FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $201.5 million. TIB Bank’s acquisition of all of the deposits was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to alternatives. Riverside Bank is the eleventh bank to fail in the nation this year. The last bank to fail in Florida was Ocala National Bank on Jan. 30, 2009.

Riverside Bank of the Gulf Coast is not affiliated with either Riverside National Bank of Florida, Fort Pierce or with Riverside Bank of Central Florida, Winter Park.

Source Federal Deposit Insurance Corporation.