First Southern Bank acquires Haven Trust

Historic City News was informed Friday evening that St. Johns County based Haven Trust Bank Florida, with offices in St. Augustine and Ponte Vedra Beach, has been taken over by a South Florida bank in a Federal Deposit Insurance Corp. assisted deal.

The FDIC and First Southern Bank of Boca Raton entered into a loss-share transaction on $127.3 million of Ponte Vedra based Haven Trust’s assets, according to a press release issued by the FDIC. First Southern Bank will share in the losses on the asset pools covered under the loss-share agreement.

The four-year-old Haven Trust was issued a consent order in March to decrease problem loans and raise capital. The bank had $148.6 million in assets and $133.6 million in total deposits as of the second quarter, according to a previously reported article in Historic City News.

Haven Trust was also the biggest income loser of 15 locally based community banks in the second quarter, with a net loss of $13.5 million, according to SNL Financial.

Haven Trust was the 23rd largest bank in Northeast Florida with nearly $157.2 million in area deposits as of June 30, 2009, the latest data available from the FDIC’s market share report.

Five of the 11 founders and directors for Haven Trust Bank Florida were also directors of the Duluth, Ga.-based Haven Trust Bank that failed in 2008. Both banks operated as a separate institution, charter and bank holding company.

Haven Trust is the second bank in Northeast Florida to fail since the financial crisis began. In April, First Federal Bank of North Florida was taken over by TD Bank NA. It is also the 126th FDIC-insured bank to fail in the nation this year, and the 24th to fail in Florida.

FDIC officials reported that First Southern Bank has five branches, located in Coral Springs, Fort Lauderdale, Boca Raton and North Palm Beach.