Centennial Bank in Arkansas Assumes Deposits of Heritage Bank of Florida

Nov 5 - Heritage Bank of Florida, Lutz, Fla., has been closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Centennial Bank, Conway, Ark., to assume all of the deposits of Heritage Bank of Florida.

As of Sept. 30, 2012, Heritage Bank of Florida had approximately $225.5 million in total assets and $223.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, Centennial Bank agreed to purchase approximately $193.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

Customers with questions about the transaction should call the FDIC toll-free at 800-830-4731. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/heritage_fl.html.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $65.5 million. Compared to other alternatives, Centennial Bank's acquisition was the least costly resolution for the FDIC's DIF. Heritage Bank of Florida is the 48th FDIC-insured institution to fail in the nation this year, and the eighth in Florida. The last FDIC-insured institution closed in the state was First East Side Savings Bank, Tamarac, on Oct. 19, 2012.