The Hill Street-based bank and trust company has been sold as part of its US parent’s strategy to withdraw from international banking.
Riggs employs ten people in the Island, all of whom will transfer to Bank Leumi.
It will give Leumi a physical presence in the Island for the first time although it has had a managed branch, which is run by a third party, since 1993.
It will be taking on Riggs’ £64m worth of customer deposits, a credit portfolio of £87m and trusts totalling £228m.
Baruch Lederman, chief executive of Bank Leumi UK, said: ‘Our strategy is to develop our international business and this acquisition will allow us to improve our level of service to existing and new clients.
‘The Leumi group is focussing on expanding its private banking activity so taking on Riggs will enhance our range of offshore and trust services and provide a platform for further growth.
‘We were keen to buy Riggs because we are already familiar with the Island so are aware of its quality and reputation as an offshore centre.
