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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.