Fifth Third Bancorp to Buy First National Bankshares of Florida

Weekly Corporate Growth Report, Aug 9, 2004

The Deal: Fifth Third Bancorp has signed a definitive agreement to acquire First National Bankshares of Florida Inc. and its subsidiaries in a deal valued at $1.58 billion. Under the terms of the agreement, each share of First National Bankshares of Florida will be exchanged for 0.5065 shares of Fifth Third Bancorp. The deal has been approved by the boards of both companies. The acquisition is expected to close in the first quarter of 2005 and is subject to normal regulatory approvals in addition to the approval of First National's shareholders.

Discussion: First National Bankshares of Florida spun off from from F.N.B. Corporation at the beginning of 2004. The company is the holding company for First National Bank of Florida. The bank operates 60 branches in southwest and central portions of Florida. The company also operates Roger Bouchard Insurance and First National Wealth Management.

Fifth Third Bancorp is the holding company for Fifth Third Bank. The bank operates about 950 branches in the Midwest and Florida. Fifth Third also runs the Jeanie ATM network and offers foreign exchange trading, life and title insurance, and import/export services. The company was created in 1908 when Fifth National Bank merged with Third National Bank.

The acquisition will strengthen Fifth Third's position in the rapidly growing Florida market.