Saturday November 1, 2008 Navivest

Freedom Bank, which is based in Bradenton, Florida, was shut down yesterday, by the Commissioner of the Florida Office of Financial Regulation. The Federal Deposit Insurance Corporation (FDIC) was named receiver.

The FDIC has entered into a purchase and assumption agreement with Fifth Third Bank of Grand Rapids, Michigan and Fifth Third will 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 Freedom Bank will automatically become depositors of Fifth Third.

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 which works out to about $2.5 million. In addition to assuming the failed bank’s deposits, Fifth Third will purchase approximately $36 million of assets.