The Hartford Financial Services Group, an insurance and financial services company, has entered into definitive agreement to sell its Federal Trust Corporation to Florida-based CenterState Banks, as part of its strategy to sale sales of non-core operations.
Acquired by The Hartford in June 2009, Federal Trust is a unitary thrift holding company and is the parent company of Federal Trust Bank.
Federal Trust Bank operates 11 full-service offices in Seminole, Orange, Volusia, Lake and Flagler Counties, Florida.
The Hartford expects to record an after-tax charge of approximately $70m in the second quarter related to the divestiture, including losses on certain Federal Trust Bank assets and liabilities which will not be sold to CenterState Banks.
CenterState Banks has approximately $2.2bn in assets, operates through two subsidiary banks with 52 branch locations in fourteen counties throughout central Florida.
The transaction, which is subject to regulatory approval, is expected to close in the fourth quarter of 2011.