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| TD Bank’s spending on acquisitions in the US in the last five years |
The latest sale of failing US banks by the Federal Deposit Insurance Corp points to a return to traditional M&A methods and highlights the system’s improving health, say bankers. In April, TD Bank bought three Florida banks with loss-share agreements with the FDIC that were less attractive than in previous deals. "There is still such a bank-buying frenzy that acquirers are prepared to pay the premiums but these are no longer golden ticket deals," says an M&A adviser who prefers to remain anonymous as he is advising the FDIC on deals. "We expect the changes in deal premiums will lead to traditional unassisted bank M&A," he says. TD Bank acquired AmericanFirst Bank, First Federal Bank of North Florida and Riverside National Bank of Florida. Together the banks add $3.1 billion in deposits and $3.8 billion in assets to TD Bank. Ed Clark, president and chief executive, says the deal has saved the firm five years compared with growing organically. It tightens the gap between TD Bank, the 13th-largest US bank by deposits, and HSBC, which is in 12th place with a lead of only about $2 billion.
