WASHINGTON BUREAU — Hartford Financial Services Group Inc. has found a buyer for Federal Trust Bank, a Florida thrift it acquired in early 2009, back when it was applying for permission to participate in the federal Troubled Asset Relief Program (TARP).
Center State Banks Inc., Davenport, Fla., will be the acquirer, according to Hartford Financial, Hartford (NYSE:HIG).
Hartford is not saying how much Center State is paying for Federal Trust, but it says it hopes to close on the sale by the end of the year.
Hartford will record a $70 million charge in the second quarter in connection with the sale, the company says.
“The sale of Federal Trust is consistent with the Hartford’s recent sales of other non-core operations,” the company says in a statement about the deal. “The Hartford is focusing its resources on its core businesses and operations.”
Hartford paid about $10 million for Federal Trust.
Hartford bought the bank at a time when the U.S. Treasury Department would provide TARP funds only to a bank or to a financial services company that owned a federally regulated subsidiary.
Hartford borrowed $3.4 billion through TARP soon after it acquired Federal Trust. Hartford paid the Treasury Department back in 2010.