Fifth Third Bancorp on Monday agreed to acquire Falls Financial Inc., a $581 million-asset Ohio thrift holding company, in a stock swap valued at $76.6 million.

The price equals roughly 150% of the thrift company's book value, or nearly 14 times earnings for the 12 months ended Sept. 30. Falls Financial is the parent of Falls Savings Bank, which operates 14 branches. George A. Schaefer Jr., Fifth Third's president and CEO, said the deal would "contribute positively to per-share earnings and growth."

Cincinnati-based Fifth Third said the transaction would double its presence in northeastern Ohio, to $1.2 billion of assets and 31 offices. The $14.3 billion-asset banking company said it expects to close the deal in the third quarter of 1995.

Falls Financial, based in Cuyahoga Falls, earned $5.5 million during the year ended Sept. 30, for a 1.39% return on average assets.

Fred Cummings, a banking analyst with McDonald & Co. estimated the deal would have a neutral impact on Fifth Third's earnings per share in 1995 and would be accretive thereafter.

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.