F.N.B. Acquires Maryland's OBA Bank for $94 million
HERMITAGE, Pa. -- F.N.B. Corporation announced Tuesday that it will acquire OBA Financial Services Inc., the Germantown, Md.-based holding company and parent of OBA Bank. The all-stock transaction is valued at $94 million in the aggregate.
The transaction is valued at approximately $23.56 per share, using the 20-day average closing stock price of F.N.B. Corp. as of April 7, the company said. The acquisition is expected to provide FNB with an additional $390 million in total assets, $290 million in total deposits, $300 million in loans and 6 banking locations. OBA Bank operates six banking offices in Montgomery, Anne Arundel and Howard counties in Maryland.
"This transaction presents an opportunity to add scale to our Maryland region and efficiently provide capital that can be leveraged to support our future growth," said Vincent J. Delie Jr., president and CEO of F.N.B. "Since entering the Maryland market in 2013, we have built a solid presence and attracted strong regional leadership and an exceptional team of bankers. With this acquisition, we will continue to leverage our investments in the market and gain access to additional high-growth areas that will further strengthen our organic growth potential."
Inclusive of OBA Financial Services, Inc., F.N.B. will have $1.2 billion in deposits and 31 branch locations in Maryland. The transaction is expected to be completed in the third quarter.
Under the terms of the merger agreement, which has been approved by the boards of directors of both companies, shareholders of OBA will be entitled to receive 1.781 shares of F.N.B. common stock for each common share of OBA. The exchange ratio is fixed and the transaction is expected to qualify as a tax-free exchange for OBA shareholders.
"We strongly believe that F.N.B. Corp. demonstrates a commitment to its clients, employees and local communities and has an outstanding record of shareholder value creation," said Charles E. Weller, president and CEO of OBA.
F.N.B. Corp. is a diversified financial services company operating in six states and three major metropolitan areas including Pittsburgh, where it holds the No. 3 retail deposit market share, Baltimore and Cleveland. The company has total assets of $14.2 billion and more than 280 banking offices throughout Pennsylvania, Ohio, West Virginia and Maryland.
SOURCE: F.N.B. Corporation
Published by The Business Journal, Youngstown, Ohio.
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