Freedom Bank of Florida is the 17th U.S. bank failure of the year

November 1, 2008 by · Leave a Comment
Filed under: Bank Failure 

Almost like clockwork that we see a bank failure at the closing of the day on Friday.  Freedom Bank of FL has been shut down by the FDIC.  At the time of the closing they had $254 million dollars in deposits.  These customer deposits have been purchased by the Fifth Third Bank.  Of the $287 millon in assets, Fifth Third will purchase only $32 millon of them and the FDIC will be retaining the rest.

FDIC Release:

Freedom Bank, Bradenton, Florida, was closed today by the Commissioner of the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Fifth Third Bank, Grand Rapids, Michigan, to assume all of the deposits of Freedom Bank.

The four branches of Freedom Bank will reopen on Monday as branches of Fifth Third Bank. Depositors of the failed bank will automatically become depositors of Fifth Third. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Fifth Third can fully integrate the deposit records of Freedom Bank.

Over the weekend, depositors of Freedom Bank can access their money by writing checks or using ATM 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 October 17, 2008, Freedom Bank had total assets of $287 million and total deposits of $254 million. Fifth Third agreed to assume all the deposits for a premium of 1.16 percent. In addition to assuming the failed bank’s deposits, Fifth Third will purchase approximately $36 million of assets. The FDIC will retain the remaining assets for later disposition.

Source: FDIC

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