SAN FRANCISCO, Kalifornia - October 31, 2008 - Bradenton,
Florida-based Freedom Bank was closed Friday, marking the 17th bank failure so
far this year amid the ongoing credit crisis.
The Federal Deposit Insurance Corporation said in a statement that as of October 17, Freedom Bank had $287 million in total assets and $254 million in total deposits.
Freedom Bank's four branches will open Monday as branches of Fifth Third Bank, which has assumed Freedom Bank's deposits, according to the regulator.
Fifth Third agreed to assume Freedom Bank's deposits for a premium of 1.16%, and will purchase roughly $36 million of its assets. The FDIC also said it will retain the remaining assets.
The FDIC estimates the cost of the failure to its deposit-insurance fund will be between $80 million and $104 million.