Fifth Third Bancorp said Wednesday it agreed to acquire CitFed Bancorp Inc. of Dayton for about $660 million in stock, as the banking industry continued its consolidation.
Under the deal, Cincinnati-based Fifth Third will offer 0.67 share of its stock for each CitFed share in a tax-free exchange. The terms value CitFed at $50.92 per share, a 35 percent premium over its Tuesday closing price of $37.75.
On Wednesday, CitFed’s stock jumped $11.62, to $49.37, in Nasdaq trading; Fifth Third shares fell $4.50, to $76, also on Nasdaq.
Analysts applauded the third acquisition in three weeks by Fifth Third, which has been using its high-flying stock to extend a string of Midwestern buyouts.
CitFed, holding company for Citizens Federal Bank, has 36 branches and assets of $3.3 billion.
It will move Fifth Third’s western Ohio affiliate to first place from fourth in the Dayton market, with a combined 85 branches, $5.3 billion in assets and a 25.3 percent share.
In all, Fifth Third Bancorp has 11 affiliates, with 410 branches and $20.9 billion in assets.
Fifth Third will take a net $35 million one-time charge for the acquisition in the second quarter, when it expects the deal to close.
