Fed approves Fifth Third deal to buy First Charter

WASHINGTON (Reuters) - The Federal Reserve Board said on Tuesday it approved Cincinnati-based Fifth Third Bancorp's plan to buy First Charter Corp FCTR.O and expand into North Carolina and Georgia.

The Fed said in a statement that the proposed cash-and-stock transaction, valued at $1.1 billion when it was announced in August 2007, was consistent with approval under the Bank Holding Company Act.

Fifth Third will add about $4.9 billion of consolidated assets in the transaction, the Fed said, maintaining its position as the 18th largest U.S. depository institution, with total consolidated assets of about $115.8 billion and deposits of $73.6 billion.

Based in Charlotte, North Carolina, First Charter operates 57 branches in its home state and two in suburban Atlanta.

The Fed said Fifth Third and First Charter do not compete directly in any relevant banking markets, so there were no adverse competitive considerations associated with the deal.