Fifth Third Bancorp's plans to expand in the south-eastern US bore fruit on Monday when it agreed to acquire the largest bank based in Florida for $1.6bn in stock.

The deal is the latest in the consolidation of the banking industry in the region this year, after Wachovia's $14bn agreed purchase of SouthTrust, SunTrust's $7bn proposed acquisition of National Commerce Financial, and Regions Financial's $6bn deal to take control of Union Planters.