In a transaction that was said to be in line with both companies' strategic goals, Cincinnati-based Fifth Third Bancorp has agreed to buy First Nationwide Bank's Ohio branch network for $129 million.

The purchase of 28 branches and $1.4 billion in deposits is expected to boost Fifth Third's earnings by reducing funding costs. The earnings boost is expected even though the purchase premium - 9.2% of the deposits - is relatively high in comparison to other deals.

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