CINCINNATI, Oct. 31 /PRNewswire-FirstCall/ -- 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."
Corporate Profile
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. The Company has $116 billion in assets,
operates 18 affiliates with 1,299 full-service Banking Centers, including 93
Bank Mart(R) locations open seven days a week inside select grocery stores and
2,334 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(R) National Global Select Market under
the symbol "FITB."
FORWARD-LOOKING STATEMENTS
This report may contain forward-looking statements about Fifth Third
Bancorp within the meaning of Sections 27A of the Securities Act of 1933, as
amended, and Rule 175 promulgated thereunder, and 21E of the Securities
Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that
involve inherent risks and uncertainties. This report may contain certain
forward-looking statements with respect to the financial condition, results of
operations, plans, objectives, future performance and business of Fifth Third
Bancorp including statements preceded by, followed by or that include the
words or phrases such as "believes," "expects," "anticipates," "plans,"
"trend," "objective," "continue," "remain" or similar expressions or future or
conditional verbs such as "will," "would," "should," "could," "might," "can,"
"may" or similar expressions. There are a number of important factors that
could cause future results to differ materially from historical performance
and these forward-looking statements. Factors that might cause such a
difference include, but are not limited to: (1) general economic conditions
and weakening in the economy, specifically the real estate market, either
national or in the states in which Fifth Third, does business, are less
favorable than expected; (2) deteriorating credit quality; (3) political
developments, wars or other hostilities may disrupt or increase volatility in
securities markets or other economic conditions; (4) changes in the interest
rate environment reduce interest margins; (5) prepayment speeds, loan
origination and sale volumes, charge-offs and loan loss provisions; (6) Fifth
Third's ability to maintain required capital levels and adequate sources of
funding and liquidity; (7) changes and trends in capital markets; (8)
competitive pressures among depository institutions increase significantly;
(9) effects of critical accounting policies and judgments; (10) changes in
accounting policies or procedures as may be required by the Financial
Accounting Standards Board or other regulatory agencies; (11) legislative or
regulatory changes or actions, or significant litigation, adversely affect
Fifth Third, or the businesses in which Fifth Third, one is engaged; (12)
ability to maintain favorable ratings from rating agencies; (13) fluctuation
of Fifth Third's stock price; (14) ability to attract and retain key
personnel; (15) ability to receive dividends from its subsidiaries; (16)
potentially dilutive effect of future acquisitions on current shareholders'
ownership of Fifth Third; (17) effects of accounting or financial results of
one or more acquired entities; (18) difficulties in combining the operations
of acquired entities; (19) inability to generate the gains on sale and related
increase in shareholders' equity that it anticipates from the sale of certain
non-core businesses, (20) loss of income from the sale of certain non-core
businesses could have an adverse effect on Fifth Third's earnings and future
growth (21) ability to secure confidential information through the use of
computer systems and telecommunications networks; (22) the impact of
reputational risk created by these developments on such matters as business
generation and retention, funding and liquidity; and (23) the Treasury
providing satisfactory definitive documentation for its purchase of senior
preferred shares and agreement on final terms and conditions. Additional
information concerning factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements
is available in the Bancorp's Annual Report on Form 10-K for the year ended
December 31, 2007, filed with the United States Securities and Exchange
Commission (SEC). Copies of this filing are available at no cost on the SEC's
Web site at www.sec.gov or on the Fifth Third's Web site at www.53.com. Fifth
Third undertakes no obligation to release revisions to these forward-looking
statements or reflect events or circumstances after the date of this report.
