A Florida bank has become the 17th federally insured institution to fail this year. It has also become the 83rd company this year to land in the Mortgage Graveyard.
The Commissioner of the Florida Office of Financial Regulation shut down Freedom Bank in Bradenton, an announcement today from the Federal Deposit Insurance Corporation said.
FDIC was named receiver.
Fifth Third Bank of Grand Rapids, Mich., will assume all of Freedom’s deposits at a 1.16 percent premium. Fifth Third will also acquire $36 million of Freedom’s $287 million in assets. Freedom had $214 million in net leases and loans, including $36 million in non-current loans, at the end of June.
Four branches of Freedom, which had 63 employees as of June 30, will reopen on Monday as Fifth Third.
The federal bank insurer said the cost of Freedom’s failure was minimized and will be between $80 million and $104 million — around one-third of total assets.