Fifth Third Bancorp (FITB) is planning to acquire banks with the assistance of the Federal Deposit Insurance Corporation (FDIC). The company intends to expand within its operating footprint instead of venturing beyond that. While the company has already evaluated some of the FDIC-assisted purchases, the deposit mix was neither suitable nor large enough. The company intends to acquire such banks with the FDIC’s assistance, which would significantly increase its market share in one or more markets. Fifth Third already has the experience of acquiring such troubled banks. Last year, the company completed the conversion of Bradenton-based Freedom Bank, which bank regulators had declared insolvent on Oct. 31, 2008 and the FDIC was named the receiver. Fifth Third Bank assumed approximately $250 million in failed Freedom Bank’s deposits from the FDIC. The transaction gave Fifth Third approximately $685 million in deposits in the Bradenton-Sarasota-Venice Metropolitan Statistical ...

We highlight Marriott International, Inc. (MAR) and Fifth Third Bancorp (FITB).There were no surprises from the Fed. The target for the fed funds rate was unchanged, the economy is still a concern and the central bank's balance sheet is being expanded.Stabilization of the credit markets and the economy remains the focus of the Fed. Today's statement shows that the Federal Open Market Committee remains willing to risk high inflation in the years ahead if that means avoiding deflation now. Given the prevailing conditions, this is the right move.Even though the first-quarter GDP report had some bright spots -- such as the improvement in consumer spending and the decline in inventories -- it was an awful report. The recession is marching on.Yes, we are seeing many signs the rate of deterioration has slowed, but the economy is still going downhill. The ...

Highlights include D.R. Horton, Inc. (DHI), The Ryland Group, Inc. (RYL), Bank of America Corp. (BAC), Fifth Third Bancorp (FITB) and Comerica Inc. (CMA).At last month's sales pace, it would take 13.3 months to sell all the new homes currently in inventory. This is by far an all-time record. So what happens? New housing starts jumped in February 22.2% to a seasonally adjusted annual rate (SAAR) of 583,000 from the 477,000 pace of January.While this is still down significantly (-47.3%) from the year-ago pace of 1,107,000 it is nothing short of economic insanity. The last thing the housing market needs right now is new supply. These numbers will help the look of the first quarter GDP, since the residential investment component will be much larger than anyone expected. However, this is, quite frankly, an unmitigated disaster in terms of the ...

America’s finest quality is that it has no memory! Three months ago, the topic of the day was which window to jump from; today all I hear is how hot the market is. This morning’s conversation on “Squawk Box” was how the market has moved 24 percent and maybe there is too much exuberance.

Too much exuberance? Last October we were wondering if there would be a run on the banks. Now it’s too much activity.

This complete lack of an ability to remember any bad news has a backside, you knew that was coming. The backside is that we also are blinded by the short-lived bad news.

For four months, almost every editor at “The Daily Edge” described the market this fall as the best buying opportunity of our lifetime. Virtually no one paid any attention.

The only thing more deficient than our memory is our ability to buy when things are cheap,

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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.

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