Make us your home page
Instagram

TD Bank buys troubled parent of Mercantile Bank

Toronto-Dominion Bank is buying the troubled parent of Mercantile Bank, accelerating the Canadian institution's push to become a major player in Florida banking.

Mercantile, with 19 branches in the Tampa Bay area, is part of the South Financial Group. The Greenville, S.C.-based bank operates as Carolina First in the Carolinas.

Under a government-brokered deal announced Monday, Toronto-Dominion, which goes by TD Bank in the United States, is paying $191.6 million in cash and stock for South Financial.

The U.S. Treasury has agreed to sell about $347 million of preferred stock in South Financial to TD through its Troubled Asset Relief Program program. The government will discharge all accrued but unpaid dividends on the stock for $130.6 million.

South Financial has 176 branches in the Southeast, including 66 locations in Florida operating under the Mercantile banner. The bank has long blamed its financial woes largely on problem residential and land development loans in Florida.

TD Bank last month took over three failing Florida banks: Riverside National Bank of Florida in Fort Pierce, AmericanFirst Bank in Clermont and First Federal Bank of North Florida in Palatka.

Monday's deal acquiring South Financial "builds on our organic growth capability and the momentum of our recent acquisitions in the deposit-rich Florida market," TD Bank president and CEO Bharat Masrani said in a statement.

In announcing the deal, South Financial Group simultaneously postponed its annual meeting, which was supposed to be held Tuesday.

South Financial said the deal is expected to close later this year pending regulatory and shareholder approval.

Fast facts

Who is TD Bank?

The U.S. arm of Toronto-based TD Bank Financial Group has more than 1,100 branches and 5,300 ATMs in the United States.

What's changing at my Mercantile Bank branch?

Nothing yet. The acquisition must be approved by regulators and by shareholders of the South Financial Group. Until then, the bank says it's "business as usual" at Mercantile Bank locations.

When will the acquisition close?

It's expected to close in late 2010.

TD Bank buys troubled parent of Mercantile Bank 05/17/10 [Last modified: Tuesday, May 18, 2010 11:48am]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. To catch a poacher: Florida wildlife officers set up undercover gator farm sting

    Wildlife

    To catch a ring of poachers who targeted Florida's million-dollar alligator farming industry, state wildlife officers created the ultimate undercover operation.

    To catch a ring of poachers who targeted Florida's million-dollar alligator farming industry, the Florida Fish and Wildlife Conservation Commission set up an undercover operation. They created their own alligator farm, complete with plenty of real, live alligators, watched over by real, live undercover wildlife officers. It also had hidden video cameras to record everything that happened. That was two years ago, and on Wednesday wildlife officers announced that they arrested nine people on  44 felony charges alleging they broke wildlife laws governing alligator harvesting, transporting eggs and hatchlings across state lines, dealing in stolen property, falsifying records, racketeering and conspiracy. The wildlife commission released these photos of alligators, eggs and hatchlings taken during the undercover operation. [Courtesy of Florida Fish and Wildlife Conservation Commission]
  2. CBO analysis: 23 million would lose health coverage under House-passed bill

    National

    WASHINGTON — The Republican health care bill that passed the House earlier this month would nearly double the number of Americans without health insurance over the next decade, according to a new analysis by the nonpartisan Congressional Budget Office.

    Demonstrators protests the passage of a House Republican health care bill, outside the the Capitol in Washington, on May 4. The House took the unusual step of voting on the American Health Care Act before the Congressional Budget Office could assess it. That analysis was released Thursday and it showed the bill would cause 23 million fewer people to have health insurance by 2026. Many additional consumers would see skimpier health coverage and higher deductibles, the budget office projected.
  3. Florida Specialty Insurance acquires Pinellas Park's Mount Beacon Insurance

    Banking

    Tens of thousands of homeowners who were pushed out of Citizens Property Insurance for a private carrier since 2014 are finding themselves changing insurance companies yet again.

  4. Marijuana extract Epidiolex helps some kids with epilepsy, study shows

    Health

    A medicine made from marijuana, without the stuff that gives a high, cut seizures in kids with a severe form of epilepsy in a study that strengthens the case for more research into pot's possible health benefits.

    An employee checks a plant at LeafLine Labs, a medical marijuana production facility in Cottage Grove, Minn. [Associated Press (2015)]
  5. St. Pete Economic Development Corporation lures marketing firm MXTR to town

    Economic Development

    St. Petersburg Economic Development Corporation has lured its first big catch to St. Petersburg — MXTR Automation. The digital marketing company announced Wednesday that it will fill 20 "high-wage" creative positions within the next 18 months, as well as open an office in downtown St. Petersburg this year.