Fifth Third to Acquire All Deposits of Bradenton-Based Freedom Bank From FDIC
Fifth Third Bancorp (Nasdaq: FITB) today announced that Fifth Third Bank (South Florida) will assume approximately $250 million of deposits, including all uninsured deposits, from the Federal Deposit Insurance Corporation acting as receiver for Bradenton-based Freedom Bank.
At the close of business on October 31, banking regulators declared Freedom Bank insolvent and the FDIC was named receiver. The FDIC approved the assumption of all deposits by Fifth Third Bank. The FDIC will retain substantially all of Freedom Bank's loan portfolio for later disposition.
"We are pleased to provide a new home for Freedom Bank's deposit customers and to provide them the strength and convenience of Fifth Third," said Kevin T. Kabat, chairman, president, and CEO of Fifth Third Bancorp. "We are very pleased that no deposit customer at Freedom Bank will lose any of their deposit savings as a result of this transaction. Fifth Third remains committed to doing the right thing to support its core communities during this difficult time."
The transaction will give Fifth Third approximately $675 million in deposits in the Bradenton-Sarasota-Venice Metropolitan Statistical Area (MSA), and raise Fifth Third's deposit market share in that market from 8th to 4th, according to recent FDIC data.
Fifth Third will provide banking services to Freedom Bank's former customers, and will operate Freedom Bank's four branches beginning Monday, November 3, under the Fifth Third Bank name. Customers of both banks should continue to use their existing branches until Fifth Third can fully integrate the deposit records of Freedom Bank. After this transition period, Freedom Bank's customers will gain access to Fifth Third's 16 existing locations in the Bradenton-Sarasota market, as well as to Fifth Third's nearly 1,300 branches and over 2,300 ATMs in 12 states, including 156 branches and 183 ATMs in Florida.
Fifth Third will work with Freedom Bank's employees to identify potential job opportunities with Fifth Third Bank.
"We look forward to welcoming Freedom Bank customers to Fifth Third," said David Call, president and CEO of Fifth Third Bank (South Florida). "We're pleased to work with the FDIC to provide this security to Freedom Bank's depositors, and to welcome all Freedom Bank customers to enjoy the benefits of banking with Fifth Third Bank."
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has $116 billion in assets, operates 18 affiliates with 1,298 full-service Banking Centers, including 93 Bank Mart(R) locations open seven days a week inside select grocery stores and 2,329 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2008, has $196 billion in assets under care, of which it managed $ 30 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ® National Global Select Market under the symbol “FITB.”