Feds Seize Haven Trust Bank – 24th Failure in ’08

Haven Trust Bank, Duluth, Georgia was seized Friday by the Georgia Department of Banking and Finance where the Federal Deposit Insurance Corporation [FDIC] was named receiver. The bank will be assumed by Branch Banking & Trust (BBT), the FDIC said in a statment.

From the FDIC:

To protect the depositors, the FDIC entered into a purchase and assumption agreement with Branch Banking & Trust (BB&T), Winston-Salem, NC, to assume all of Haven Trust’s deposits, including those that exceeded the insurance limit.

The four branches of Haven Trust will reopen on Monday as branches of BB&T. All the depositors of Haven Trust will automatically become depositors of BB&T.

As of December 8, 2008, Haven Trust had total assets of $572 million and total deposits of $515 million. BB&T agreed to assume all of the deposits for $112,000. In addition to assuming all of the failed bank’s deposits, BB&T will purchase approximately $55 million of the failed bank’s assets.

Federal regulators will retain the failed bank’s remaining assets for later disposition.

Last Friday, First Georgia Community Bank was seized by regulators, marking the 23rd bank failure of the year. The 24 banks closed this year compares with only three bank failures in fiscal 2007, and none in ’06 and ’05.

About Ron Haruni 1146 Articles
Ron Haruni

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