By B.C. Manion
Heritage Bank of Florida in Lutz has been bought by Centennial Bank of Conway, Ark., according to a release from the Federal Deposit Insurance Corporation (FDIC).
Heritage was closed by state financial regulators Nov. 2, but reopened three days later as branches of Centennial.
The Florida Office of Financial Regulation appointed the FDIC as a receiver for the bank, which entered into a purchase and assumption agreement with Centennial in order to protect the depositors, the release states.
Heritage had three branches, which were in Lutz, West Tampa and Wesley Chapel.
Depositors of Heritage have automatically transferred to Centennial, and deposits continue to be insured by the FDIC up to applicable limits.
The FDIC release notes that customers of Heritage should continue to use their existing branch until they receive notice from Centennial that it has completed systems changes to allow its other branches to process their accounts as well.
Heritage, an independent community bank, began operation in August 1999. Its primary service areas were Central Pasco and North and Central Hillsborough counties.
As of Sept. 30, Heritage had approximately $225.5 million in total assets and $223.3 million in total deposits, according to the FDIC. In addition to assuming all of the deposits of the failed bank, Centennial agreed to purchase approximately $193.7 million of the failed bank’s assets.
The FDIC retains the remaining assets for disposition at a later time, the release notes.
Heritage is the 48th FDIC-insured institution to fail in the nation this year, and the eighth in Florida.
The FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $65.5 million. Compared to other alternatives, Centennial’s acquisition was the least costly resolution for the FDIC’s insurance fund, the FDIC’s release states.
Centennial is a wholly owned subsidiary of Home BancShares, a bank-holding company headquartered in Conway. Centennial has locations in central Arkansas, Florida and Alabama.
“We are excited to welcome the customers and employees of Heritage Bank to our family and look forward to the benefits this acquisition should bring to the businesses and residents of the northern Tampa area,” said Randy Sims, chief executive officer, in a release.
“We want depositors of Heritage Bank to be confident in knowing that they will be banking with a strong, community banking-oriented financial institution,” Sims continued. “We also want to reassure all customers of Heritage Bank they will continue to conduct business as normal with the employees with whom they have built a solid long-term relationship.”
Customers who have questions about the sale should call the FDIC at (800) 830-4731 on weekdays from 9 a.m. to 5 p.m. or visit www.fdic.gov/bank/individual/failed/heritage_fl.html.