Fifth Third Bancorp (NASDAQ:FITB) today announced a strategic acquisition that will enhance its ability to finance multifamily housing across the United States. The Bank has entered into a definitive agreement to acquire Mechanics Bank's Delegated Underwriting and Servicing (DUS) business line, which includes its experienced team and a $1.8 billion unpaid principal balance servicing portfolio.
"This acquisition strengthens Fifth Third's leadership in commercial real estate finance and expands our ability to serve multifamily developers and investors with competitive, permanent financing solutions," said John Hein, head of Commercial Real Estate at Fifth Third. "Multifamily housing is the largest component of our commercial real estate portfolio, and this move enables us to better support our clients and the housing needs in the communities we serve."
As a cornerstone of Fannie Mae's multifamily lending platform, the DUS program is designed to provide liquidity and stability to the housing market. Fifth Third gains direct access to Fannie Mae products and a proven servicing model by acquiring this license and reinforces its commitment to delivering innovative solutions for clients and advancing housing affordability.
The acquisition is subject to customary closing conditions and certain third-party approvals, including approval by Fannie Mae.
Advisors
J.P. Morgan Securities LLC is serving as financial advisor to Mechanics Bank, with Wachtell, Lipton, Rosen & Katz serving as legal advisor. Goldman Sachs is serving as financial advisor to Fifth Third, with Alston & Bird serving as legal advisor.
About Fifth Third
Fifth Third is a bank that's as long on innovation as it is on history. Since 1858, we've been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it's one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere's World's Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation's highest performing regional bank, but to be the bank people most value and trust.
Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank, and its common stock is traded on the NASDAQ® Global Select Market under the symbol "FITB." Investor information and press releases can be viewed at www.53.com.
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Adrienne Gutbier (Media Relations)
adrienne.gutbier@53.com | 513-534-8038
Matt Curoe (Investor Relations)
matthew.curoe@53.com | 513-534-2345
