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Fifth Third Completes Acquisition of R-G Crown Bank
Expands presence in Orlando and Tampa; adds Jacksonville and Augusta, GA markets
Fifth Third Bancorp (NASDAQ: FITB) announced the completion of its acquisition of R-G Crown Bank on November 2. R-G Crown Bank and its 30 Florida branches will be merged with Fifth Third Bank (Michigan) and R-G Crown Bank’s 3 locations in Augusta, GA will be merged into Fifth Third Bank, N.A.
Fifth Third is adding approximately $2.8 billion in assets and $1.7 billion in deposits to its existing Florida franchise, bringing the totals for the state of Florida to approximately $10 billion in assets and $7 billion in deposits. Additionally, Fifth Third now has a total of 133 locations and 150 ATMs in Florida.
Fifth Third President & CEO Kevin Kabat stated, “Over the past several years Fifth Third has diversified its footprint by entering into faster growing markets. Since 2004 we have gone from having 15 locations in Florida to over 130, and we have over 40 branches scheduled to open in Florida between now and the end of 2008. R-G Crown’s Florida presence dovetails nicely with our existing operations in Tampa and Orlando, while also getting us into the Jacksonville market. I am very excited about our continued growth in Florida, and want to welcome our new customers and employees coming to us from Crown to Fifth Third.”
Pursuant to the terms of the stock purchase agreement, Fifth Third paid total cash consideration of $259 million and assumed $50 million of trust preferred securities in its acquisition of R-G Crown. In a separate transaction occurring simultaneously with the closing of the Crown Bank transaction, Fifth Third will pay to R-G Crown Real Estate, LLC, approximately $16 million to acquire the underlying real estate for 15 of the branches operated by Crown.
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of September 30, 2007, the Company had $104 billion in assets, operated 18 affiliates with 1,181 full-service Banking Centers, including 104 Bank Mart® locations open seven days a week inside select grocery stores and 2,153 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania and Missouri. Fifth Third operates five main businesses: Commercial Banking, Branch Banking, Consumer Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2007, had $232 billion in assets under care, of which it managed $34 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded through the NASDAQ® National Global Select Market System under the symbol “FITB.”
This report may contain forward-looking statements about Fifth Third Bancorp and/or the company as combined acquired entities within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, that involve inherent risks and uncertainties. This report may contain certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of Fifth Third Bancorp and/or the combined company including statements preceded by, followed by or that include the words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” “remain” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) general economic conditions, either national or in the states in which Fifth Third, one or more acquired entities and/or the combined company do business, are less favorable than expected; (2) political developments, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (3) changes in the interest rate environment reduce interest margins; (4) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; (5) our ability to maintain required capital levels and adequate sources of funding and liquidity; (6) changes and trends in capital markets; (7) competitive pressures among depository institutions increase significantly; (8) effects of critical accounting policies and judgments; (9) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; (10) legislative or regulatory changes or actions, or significant litigation, adversely affect Fifth Third, one or more acquired entities and/or the combined company or the businesses in which Fifth Third, one or more acquired entities and/or the combined company are engaged; (11) ability to maintain favorable ratings from rating agencies; (12) fluctuation of Fifth Third’s stock price; (13) ability to attract and retain key personnel; (14) ability to receive dividends from its subsidiaries; (15) potentially dilutive effect of future acquisitions on current shareholders' ownership of Fifth Third; (16) effects of accounting or financial results of one or more acquired entity; (17) difficulties in combining the operations of acquired entities; (18) ability to secure confidential information through the use of computer systems and telecommunications network; and (19) the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is available in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the United States Securities and Exchange Commission (SEC). Copies of this filing are available at no cost on the SEC's Web site at www.sec.gov or on the Fifth Third’s Web site at www.53.com. Fifth Third undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this report.