Riverside Bank seized by government, new owner in place

INDIAN RIVER COUNTY — Riverside National Bank, which has been closely monitored by federal government watchdogs as it struggled for survival, Friday was seized by the Federal Deposit Insurance Corporation and taken over by TD Bank.TD Bank is the U.S. subsidiary of Toronto-Dominion Bank, the second-largest bank in Canada. TD Bank is the sixth largest bank in the United States. TD Bank also picked up two other Florida banks that failed on Friday, First Federal Bank of North Florida and AmericanFirst Bank.Riverside Bank customers will be automatically switched over to TD Bank and normal banking activity is expected to continue, including Saturday hours for selected  branches of the former Riverside Bank.According to the FDIC, checks that were drawn on Riverside National Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account.  In addition,  all outstanding checks will be paid against available balances as if no change had occurred.The FDIC also said in a press release that the new institution will maintain regular business hours and customers may continue to use the services to which they previously had access, including ATMs, safe deposit boxes, night deposit boxes and wire services.Founded in 1982 by Vernon Smith of Fort Pierce, Riverside grew to one of the largest community banks in Florida. However, when the mortgage crisis hit during the recent recession, the bank found itself with too many bad loans on its books relative to its deposits.For more information,call the FDIC at 1-800-528-6357.This story will be updated as information becomes available.

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