Small Georgia bank becomes 24th US failure in 2008

[UpInArms]

Source: Reuters

WASHINGTON, Dec 12 (Reuters) - Haven Trust Bank of Duluth, Georgia, became the 24th U.S. bank to fail this year, with BB&T Corp (BBT.N: Quote, Profile, Research, Stock Buzz) agreeing to acquire all of the deposits, the Federal Deposit Insurance Corp said on Friday.

Haven Trust had total assets of $572 million and total deposits of $515 million as of Dec. 8. The bank's four branches will reopen on Monday as branches of BB&T, the FDIC said.

The failure is expected to cost the bank regulator's deposit insurance fund about $200 million. The FDIC's fund has been dwindling as an increase in bank failures has taken its toll, reducing the fund to $34.6 billion at the end of the third quarter.

The FDIC said in addition to assuming all of the failed bank's deposits, BB&T will buy about $55 million of Haven Trust's assets. The FDIC will retain the remaining assets for later disposition.

Bank failures have spiked this year as mortgage delinquencies and liquidity concerns have cramped the industry. Just three U.S. banks failed in 2007.

Read more: http://www.reuters.com/article/bondsNews/idUSN1247047020081212

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right on Friday night time! :eyes:

[amdezurik]

1. Ok i am not a finacial wiz

in fact I do my level best not to be, but from what I see they had more in assets then in deposits? were those assests real or stuff about to be defaulted on?

[UpInArms]

3. here's the FDIC's statement:

http://www.fdic.gov/bank/individual/failed/haventrust.html

I. Introduction
On December 12, 2008, Haven Trust Bank, Duluth, GA was closed by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information which should answer many of your questions.

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II. Press Release

The FDIC has issued a press release (PR-134-2008) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact David Barr at 703-622-4790 or Andrew Gray at 202-494-1049.

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III. Acquiring Financial Institution

All deposit accounts have been transferred to Branch Banking & Trust Company, (BB&T), Winston-Salem, NC ("assuming institution") and will be available immediately. On Monday, December 15, 2008, the former Haven Trust Bank locations will reopen as branches of BB&T.

Your transferred deposits will be separately insured from any accounts you may already have at BB&T for six months after the failure of Haven Trust Bank. Checks that were drawn on Haven Trust Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. You may speak to an FDIC representative regarding deposit insurance by calling: 1-866-782-1402 or visit EDIE the FDIC's Electronic Deposit Insurance Estimator.

EDIE - FDIC's Electronic Deposit Insurance Estimator

You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with BB&T as long as the deposits are not pledged as collateral for loans. You may view more information about BB&T by visiting their web site.

BB&T (www.bbt.com)

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V. Banking Services

The Automated Teller Machines (ATM) will remain available.

As of Monday, December 15, 2008, you may continue to use the services to which you previously had access, such as, online service, safe deposit boxes, night deposit boxes, wire services, etc.

Your checks will be processed as usual. All outstanding checks will be paid against your available balance(s) as if no change had occurred. Your new bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact your branch office. An account representative will clear up any confusion about the validity of your checks.

All interest accrued through Friday, December 12, 2008, will be paid at your same rate. BB&T will be reviewing rates and will provide further information soon. You will be notified of any changes.

Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to your new bank. If you have any questions or special requests, you may contact a representative of your assuming institution at your branch office.

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VI. Loan Customers

If you had a loan with Haven Trust Bank, you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to in your promissory note with the failed institution. Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, you may call 1-866-782-1402.

For all questions regarding new loans and the lending policies of BB&T, please contact your branch office.

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VII. Possible Claims Against the Failed Institution

Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process.

Please note: there are time limits for filing a claim, as specified in the notice.

...more...

[UpInArms]

4. and here's the press release

http://www.fdic.gov/news/news/press/2008/pr08134.html

Haven Trust Bank, Duluth, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. 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. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their existing banking relationship to retain their deposit insurance coverage. Customers of the failed bank should continue to use their existing branches until they receive further information from BB&T.

Over the weekend, depositors of Haven Trust can access all their money by writing checks or using ATMs 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 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. The FDIC will retain the remaining assets for later disposition.

...more...

[amdezurik]

7. oh, just plain ick

BB&T got $515 million in deposits for $112,000 bucks? geezus WTH was going on at that "bank"? That looks like just bloody flat-out fraud to me by that management

[UpInArms]

13. here's the way they transfer all the assets to others and leave

the taxpayers holding the bag for the losses (or at least how they did it in the 80s)

http://query.nytimes.com/gst/fullpage.html?res=940DEFD61F3EF936A25753C1A96E948260&sec=&spon=&pagewanted=all

LEAD: The Federal Home Loan Bank Board today announced its sixth billion-dollar rescue of insolvent savings institutions in Texas this year.

The Federal Home Loan Bank Board today announced its sixth billion-dollar rescue of insolvent savings institutions in Texas this year.

Under today's agreement, a Texas cable entrepreneur, Don A. Adam, agreed to acquire 11 ailing savings institutions with an estimated $1.3 billion in aid over the next 10 years from the Federal Savings and Loan Insurance Corporation.

The F.S.L.I.C., which insures deposits up to $100,000 at the nation's savings institutions, has pledged $14.4 billion in mergers involving 53 institutions in the state since the first transaction was announced last May. Over all, more than $21 billion in aid has been committed to recapitalize 114 insolvent institutions this year.

M. Danny Wall, chairman of the Federal Home Loan Bank Board, has estimated the total cost of cleaning up the industry's troubled units at $45 billion to $50 billion. Other estimates range as high as $100 billion.

George Barclay, president of the Federal Home Loan Bank of Dallas, one of 12 regional banks that make up the savings industry's regulatory network, said investors who had bought into the rescued institutions in Texas so far had pledged $400 million of their own capital. The F.S.L.I.C. has retained partial ownership of all the recapitalized institutions and expects to share in future profits.

Mr. Adam, who has recently been selling off the cable business he began building in the late 1960's, said he intended to divest the last of those operations soon and would continue to look for more savings institutions to acquire in Texas. ''Financial institutions at this time offer more opportunity than any investment opportunity that I'm aware of,'' Mr. Adam told reporters at a news conference in Dallas late this afternoon.

...more...

and who's "Don Adam"?



Don A. Adam
Bryan, Texas

Eric Hilton
Las Vegas, Nevada

Joe L. Allbritton
Washington, D. C.

Robert B. Holt
Midland, Texas*

Hushang Ansary
Houston, Texas

Ray L. Hunt
Dallas, Texas

Thomas Ludlow Ashley
Leland, Michigan*

Donald M. Kendall
Purchase, New York

Dexter F. Baker
Allentown, Pennsylvania (Emeritus)

Dorothy Bush Koch
Bethesda, Maryland

James A. Baker, III
Houston, Texas

Terri Lacy
Houston, Texas*

Sam Bamieh
San Mateo, California

Carl H. Lindner, III
Cincinnati, Ohio

Griffin B. Bell
Atlanta, Georgia

John H. Lindsey
Houston, Texas*

Bruce Benson
Denver, Colorado

John D. Macomber
Washington, D.C.

Jack S. Blanton, Sr.
Houston, Texas

Cary M. Maguire
Dallas, Texas

Katherine E. Boyd
Hillsborough, California

Frederic V. Malek
Washington, D.C.

Nicholas F. Brady
Easton, Maryland

Donald B. Marron
New York, New York

Daniel B. Burke
Rye, New York

Lynn M. Martin
Chicago, Illinois

Jonathan J. Bush
New Haven, Connecticut

Louis Marx, Jr.
New York, New York

Marvin Bush
McLean, Virginia

Elvis L. Mason
Dallas, Texas (Emeritus)

Neil M. Bush
Austin, Texas

Frederick D. McClure
Washington, D.C.*

William H. T. Bush
Saint Louis, Missouri

William A. McKenzie
Dallas, Texas

Jeb Bush
Tallahassee, Florida*

Robert Mosbacher
Houston, Texas

Prescott S. Bush, Jr.
Greenwich, Connecticut

William P. Moss
Dallas, Texas

John T. Cater
Houston, Texas (Emeritus)

Brian Mulroney
Quebec, Canada (Honorary)

James W. Cicconi
Washington, D.C.*

Edward N. Ney
New York, New York

William P. Clements
Dallas, Texas

Gerald L. Parsky
Los Angeles, California

Tony Coelho
Arlington, Virginia

Dan Quayle
Scottsdale, Arizona (Honorary)

Lodwrick Cook
Sherman Oaks, California*

Sigmund A. Rogich
Las Vegas, Nevada

Dan W. Cook, III
Dallas, Texas

Susan Porter Rose
McLean, Virginia

Edwin L. Cox
Dallas, Texas

Jin Roy Ryu
Cedar Rapids, Iowa

Mrs. Earle M. Craig, Jr.
Midland, Texas (Emeritus)

William A. Schreyer
Plainsboro, New Jersey

Harlan Crow
Dallas, Texas

Arnold A. Schwarzenegger
Santa Monica, California

Trammell Crow
Dallas, Texas

Brent Scowcroft
Washington, D.C.*

Walter J. P. Curley
New York, New York

Peter Secchia
Grand Rapids, Michigan

Barbara F. Daniel-Hetherington
Houston, Texas

Melvin F. Sembler
Saint Petersburg, Florida

Robert A. Day
Los Angeles, California

Samuel K. Skinner
Winnetta, Illinois

William H. Draper, III
Atherton, California (Emeritus)

Joshua Smith
North Bethesda, Maryland

Archie W. Dunham
Houston, Texas

Alex Spanos
Stockton, California

Nancy Ellis
Boston, Massachusetts

Jacob Stein
Hicksville, New York

William Farish, III
Versailles, Kentucky

Robert S. Strauss
Washington, D.C. (Emeritus)

Laurie Firestone
Newport Beach, California

John H. Sununu
Washington, D.C.

Bradford M. Freeman
Los Angeles, California

Robert Waltrip
Houston, Texas

Craig L. Fuller
Alexandria, Virginia

Jerry Weintraub
Burbank, California

H. Laurance Fuller
Wheaton, Illinois

John F. Welch, Jr.
Boston, Massachusetts

Preston M. Geren, Jr.
Fort Worth, Texas

Gary Winnick
Los Angeles, California

C. Boyden Gray
Washington, D.C.

Richard D. Wood
Indianapolis, Indiana (Emeritus)

Adele Hall
Shawnee , Kansas

Stephen A. Wynn
Las Vegas, Nevada

John M. Hennessy
New York, New York

Gordon Zacks
Pickerington, Ohio

Mr. & Mrs. Henry L. Hillman
Pittsburgh, Pennsylvania

++++++++++++++++++++++++++++++++++++

there's an aweful lot of evil on that list

[DemoTex]

2. At least they did not name the bank "Safe Haven Trust Bank" ..

"Haven" is bad enough given their demise.

[Mojorabbit]

5. another fri nite bank failure. sigh. nt

[BR_Parkway]

6. How many straight weeks in a row?

[amdezurik]

8. I don't think there has been one "straight" week since 11/4

all so damned crooked it is making us dizzy...

(AH HA! I bet you all thought I was going to make a sexual innuendo!)

[BR_Parkway]

9. Well I was hoping - a little flirting at the end of a long day is always a

good thing!

[amdezurik]

10. oh go on!

:P

[nradisic]

11. somthing smells in Georgia....

About ten of those banks that have gone under so far this year seem to be from Georgia...

[3waygeek]

12. Lots of small banks have popped up

here in the last few years. I've lived in Duluth, GA (home of Haven Trust) for 15 years, and today is the first I've heard of it.