Failed Bank Report: Claim FDIC Insured Deposits at Failed Banks

Freedom Bank

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October 31, 2008: Freedom Bank, Bradenton, FL was closed by the Florida Office of Financial Regulation. The Federal Deposit Insurance Corporation (FDIC) was named Receiver.

As of October 17, 2008, Freedom Bank had assets of $287 million and total deposits of $254 million.

The FDIC entered into a purchase and assumption agreement with Fifth Third Bank, Grand Rapids, Michigan, to assume all of the deposits of Freedom Bank. Fifth Third agreed to assume all the deposits for a premium of 1.16 percent.

In addition to assuming the failed bank's deposits, Fifth Third will purchase approximately $36 million of assets. The FDIC will retain the remaining assets for later disposition.

All deposit accounts have been transferred to Fifth Third Bank. On Monday, November 3, all four former Freedom Bank locations reopened as branches of Fifth Third.

Transferred deposits will be separately insured from any accounts you may already have at Fifth Third Bank for six months after the failure of Freedom Bank.

Fifth Third Bank
One Vandenberg Center
Grand Rapids, MI 49503
(866) 458-7290

The FDIC estimates that the cost to the Deposit Insurance Fund will be between $80 million and $104 million.

For additional information and assistance contact the FDIC at: 1-800-591-2767 or go to:

2008 FDIC Insured Failed Banks
Freedom Bank
410 Cortez Road West
Bradenton, FL 34207
Established in 2005 as
 Freedom Bank

Assets: $287 Million

Deposits: $254 million


Cost to FDIC: $80-104 million


Transferred deposits: Deposits are separately insured from any accounts you may already have at Fifth Third Bank for six months after the failure of Freedom Bank.

Withdrawals: Account owners may withdraw your funds from any transferred account without an early withdrawal penalty until a new deposit agreement is signed with Fifth Third, as long as deposits are not pledged as collateral for loans.

Checks: Checks will be processed as usual. All outstanding checks will be paid against your available balance as if no change had occurred. Your new bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept a check, contact your branch office.

Services: As of November 3, 2008, you may continue to use the services to which you previously had access, such as, safe deposit boxes, night deposit boxes, wire services, etc.

Interest: All interest accrued through Friday, October 31, 2008 will be paid at your same rate. Fifth Third Bank will be reviewing rates and will provide further information soon.  You will be notified of any changes.

Automatic Direct Deposits: Automatic direct deposits and/or automatic withdrawals will be transferred automatically to your new bank.  If you have any questions or special requests, you may contact a representative of your assuming institution at your branch office.

Loans: If you had a loan with Freedom Bank, you should continue to make your payments as usual.  The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to your promissory note with the failed institution.  Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, you may call 1-800-591-2767.

Creditor Claims: Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure.  Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process. In accordance with federal law, allowed claims will be paid, after administrative expenses, in the following order of priority: depositors, general unsecured creditors, subordinated debt holders and stockholders.

If you provided a service for Freedom Bank, and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: Freedom Bank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas  75201
(800) 568-9161

Consumer Alert

Unclaimed FDIC Insured Deposits

Note: There are time limits on claims of FDIC-insured bank accounts, CDs and safe deposit boxes ...

If an insured depositor fails to make a claim an insured or transferred deposit within 18 months after the FDIC initiates the payment of insured deposits, the transferee institution must refund the deposit to the FDIC, and all rights of the depositor against the transferee institution are barred.

The FDIC then remits the insured deposit to the custody of the unclaimed property administrator in the account owner's home state, unless that state declines to accept custody. Upon delivery, the FDIC is deemed to have made payment to the depositor, and all rights of the depositor against the FDIC are barred.

Most states allow claims in perpetuity, but there's a reversion clause. If a depositor does not claim the deposit delivered to the custody of the State within 10 years of the date of delivery, the deposit must then immediately be refunded to FDIC, and all rights of the depositor against the state are barred.

It's important to note that If a state declines to accept custody of the deposit - which they sometimes do - the depositor must claim the funds from the FDIC before the receivership is terminated, or all rights of the depositor with respect to the deposit are barred. Dividends for credits arising from uninsured portions of a deposit may, however, be claimed after the receivership is terminated if a dividend check was returned by the post office for a bad address.

Be aware that due to the number of mergers and acquisitions in the banking industry over the years, it is possible you or a deceased family member might well have an account at a failed bank and not know it. Additionally, unclaimed safe deposit boxes at closed branches may be drilled and the contents sold at auction just weeks after closing, so prompt action is advised.  For assistance go to: Unclaimed Account Search

History: Established in 2005 as Freedom Bank.