Haven Trust Bank of Florida closed by the FDIC

September 26th, 2010 - this article is free to republish with open public license

The FDIC closed Haven Trust Bank Florida, and transferred its assets to First Southern Bank.

First Southern Bank assumed the assets of the failed Haven trust, in a deal brokered with the FDIC. Customers have been notified to continue using their normal branches.

FDIC Press Release – Haven Trust Bank Florida, Ponte Vedra Beach, Florida, was closed today 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 First Southern Bank, Boca Raton, Florida, to assume all of the deposits of Haven Trust Bank Florida.

The two branches of Haven Trust Bank Florida will reopen during their normal business hours beginning Saturday as branches of First Southern Bank. Depositors of Haven Trust Bank Florida will automatically become depositors of First Southern Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Haven Trust Bank Florida should continue to use their existing branch until they receive notice from First Southern Bank that it has completed systems changes to allow other First Southern Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Haven Trust Bank Florida 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 June 30, 2010, Haven Trust Bank Florida had approximately $148. 6 million in total assets and $133. 6 million in total deposits. First Southern Bank did not pay the FDIC a premium for the deposits of Haven Trust Bank Florida. In addition to assuming all of the deposits of the failed bank, First Southern Bank agreed to purchase essentially all of the assets.

The FDIC and First Southern Bank entered into a loss-share transaction on $127. 3 million of Haven Trust Bank Florida’s assets. First Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www. fdic. gov/bank/individual/failed/lossshare/index. html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-430-6165. The phone number will be operational this evening until 9:00 p. m. , Eastern Daylight Time (EDT); on Saturday from 9:00 a. m. to 6:00 p. m. , EDT; on Sunday from noon to 6:00 p. m. , EDT; and thereafter from 8:00 a. m. to 8:00 p. m. , EDT. Interested parties also can visit the FDIC’s Web site at http://www. fdic. gov/bank/individual/failed/haventrust_fl. html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $31. 9 million. Compared to other alternatives, First Southern Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Haven Trust Bank Florida is the 126th FDIC-insured institution to fail in the nation this year, and the twenty-fourth in Florida. The last FDIC-insured institution closed in the state was Horizon Bank, Bradenton, on September 10, 2010.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 7,830 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars ? insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www. fdic. gov, by subscription electronically (go to www. fdic. gov/about/subscriptions/index. html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-562-2200). PR-214-2010

Reuters – FDIC also announced regulators closed Haven Trust Bank Florida, Ponte Vedra Beach, Florida, which had about $148. 6 million in assets and $133. 6 million in deposits. First Southern Bank, Boca Raton, Florida, assumed the deposits.

The failures on Friday are estimated to cost the FDIC’s insurance fund a total of $104. 7 million.

The FDIC, which insures individual accounts up to $250,000, anticipates that the number of failures this year will exceed the 2009 total of 140, but that total assets of this year’s failures will probably be lower.

The agency gave an update on the overall health of the bank industry on August 31, saying that while it sees improvements in the industry the struggling economy continues to be a factor in the reluctance of businesses and consumers to borrow.

It is now mostly smaller institutions that are collapsing as they deal with problems in the commercial real estate market. Community banks tend to have higher concentrations of these loans than larger banks.

Date September 26, 2010