Pennsylvania FNB to expand into North Carolina with $117 million deal


Diving brief:

  • Pittsburgh-based FNB Corp. is seeking to expand its retail banking footprint in North Carolina by acquiring Greenville-based UB Bancorp in an all-stock deal worth $117 million. announced on Wednesday the companies in a joint press release.
  • UB subsidiary Union Bank will merge with and into FNB subsidiary First National Bank, adding approximately $1.2 billion in assets to First National and bringing its total assets to approximately $43 billion.
  • The transaction is expected to close in late 2022, according to the press release.

Overview of the dive:

Bank mergers and acquisitions have slowed in recent months as the Federal Reserve continues to raise interest rates. There were nine U.S. bank M&A deals in April, according to S&P Globallowest monthly reconciliation tally in the industry since July 2020.

The all-stock transaction is valued at $19.56 per share, or a fully diluted market value of approximately $117 million, based on the ETF’s stock price at the close of trading Tuesday. UB Bancorp shareholders will receive 1.61 ETF common shares for each UB Bancorp common share they own, according to the press release.

First National Bank has total assets of $42 billion and operates more than 340 banking offices in Pennsylvania, Maryland, Virginia, West Virginia, Ohio, North Carolina and South Carolina.

Union Bank is smaller, with $1.2 billion in total assets and 15 banking offices located in eastern and central North Carolina. The merger will give First National the eighth largest deposit market share in North Carolina.

“North Carolina has proven to be a growth engine for our company, and this new partnership with Union Bank will further leverage our market investments and accelerate our potential for organic growth,” said the FNB CEO. , Vincent J. Delie Jr., in the press release. .

“FNB and Union Bank share a deep cultural commitment to the customers and communities we serve. Our partnership with Union Bank represents another step in our continued investment in North Carolina, with pro forma filings reaching over $7 billion since entering the market in 2017.”

After the transaction, the joint organization will oversee $35 billion in deposits and $28 billion in loans in total.

“The guiding principle of Union Bank is that of a local bank providing personalized customer service to our customers,” said Lee Burrows, President of Union Bank. “In FNB, we have found a like-minded partner committed to building meaningful relationships with its customers and communities…Our partnership will add significant scale and access to a comprehensive product offering and broader expertise in the market which we believe will result in an improved customer experience for our customers.”

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