Acquisition of Haven Trust Bank Florida Assets, Deposits, Customers Strengthens Branch Network of First Southern Bank, Provides Greater Lending Capacity to the Region
In a move designed to expand its Florida franchise and serve more customers, First Southern Bank today announced that it has acquired all of the assets and assumed substantially all of the deposits of Haven Trust Bank Florida, headquartered in Ponte Vedra Beach, Fla., from the Federal Deposit Insurance Corporation (FDIC).
The deal is the first since First Southern Bancorp, parent company of First Southern Bank, announced in early February that it had raised approximately $400 million of capital to grow the company in Florida and elsewhere through strategic merger and acquisition opportunities.
The Florida Office of Financial Regulation closed Haven Trust Bank Florida today and appointed the FDIC as receiver. The FDIC, which insures deposits in its corporate capacity, entered into an agreement with First Southern Bank for the transfer of the Haven Trust Bank Florida deposits following a competitive bidding process.
Haven Trust Bank Florida had $148.6 million in total assets and $133.6 million in total deposits as of June 30, 2010. Its two banking locations – one in Ponte Vedra Beach and one in St. Augustine, both in St. Johns County – will reopen on Monday as First Southern Bank branches. Employees of First Southern Bank will be present to answer customers' questions and help make the transition to First Southern Bank as easy as possible for customers and employees of the former Haven Trust Bank Florida.
"First Southern has strong capital to provide both reassurance and capacity to customers in the region, and we welcome them to our bank," said J. Herbert Boydstun, chairman and CEO of First Southern Bank. "As a result of our solid capital position, we have money to lend and can satisfy the credit needs of our customers, helping them build their businesses, meet the demands of growing families and save for a secure financial future. We also welcome employees of Haven Trust Bank Florida to First Southern Bank and look forward to working with them to provide the kind of service that customers expect and deserve."
First Southern Bank already has five banking locations: one in North Palm Beach and one each in East and West Boca Raton in Palm Beach County, and one each in Coral Springs and Fort Lauderdale in Broward County. Through its expansion into Ponte Vedra Beach and St. Augustine, First Southern Bank is ideally positioned in a region of the state with a significant concentration of the small businesses and entrepreneurs expected to drive the local and statewide Florida economies going forward.
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 capital infusion from investors demonstrated confidence in our growth plans," Boydstun said. "Today's transaction represents an important strategic step to expand our franchise to serve more customers in more Florida markets.
The transaction is effective immediately, and customers of Haven Trust Bank Florida are now customers of First Southern Bank. First Southern Bank participates in the FDIC's Transaction Account Guarantee Program (TAG), which means that through December 31, 2010, all of the funds in customers' non-interest-bearing transaction accounts are fully guaranteed by the FDIC. This coverage is in addition to and separate from the $250,000 coverage provided under the FDIC's general deposit insurance rules.
Customers can continue to bank at any branch of the former Haven Trust Bank Florida and access their accounts by using their checks, ATM cards and debit cards, as well as Haven Trust Bank Florida's online banking and bank-by-phone services. In addition, customers should continue to make loan payments and conduct other transactions just as they did prior to the announcement. First Southern Bank will provide additional information to customers in the coming days.
Questions from customers regarding today's transaction can be directed to the FDIC toll-free at 1-800-430-6165 until 9 p.m. Eastern Time tonight, from 9 a.m. to 6 p.m. tomorrow, from noon to 6 p.m. Sunday and from 8 a.m. to 8 p.m. thereafter. Interested parties also can visit the FDIC's Web site at www.fdic.gov/bank/individual/failed/haventrust_fl.html. Additional information about First Southern Bank can be found at www.firstsouthernbank.com.
First Southern Bank, headquartered in Boca Raton, Fla., provides comprehensive products and services for businesses and consumers. First Southern Bank now has seven banking locations: five in Palm Beach and Broward counties in South Florida and one each in Ponte Vedra Beach and St. Augustine in St. Johns County.
Contacts:
First Southern Bank
Jim Lestelle, 504-552-2727
Cell:
504-520-0808
jlestelle@firstsouthernbank.com