CINCINNATI -- Fifth Third Bancorp said it has received approval from the Federal Reserve Board to acquire Cumberland Federal Bancorp.
The transaction had been approved by the Office of Thrift Supervision, Cumberland's primary regulator, on July 19. The approval included authorization to establish Fifth Third Savings Bank of Western Kentucky as a single-office federal savings bank in Mayfield.
Fifth Third said it does not expect to take the $10 million to $15 million restructuring charge it had estimated in January when it announced the acquisition. The Cincinnati-based holding company said it will save money by not converting Cumberland to a commercial bank, and its loan-loss reserve appears adequate for anticipated workouts and chargeoffs.
Other merger-related expenses were largely absorbed by Cumberland in a $4.1 million charge for the second quarter, which was partially offset by gains on the sale of mortgage loans earlier in the year.