The Herald, Sharon, Pa.

Breaking News

Business

April 9, 2014

FNB buying another Md. bank for $94M

HERMITAGE — FNB Corp. announced Tuesday it was buying OBA Financial Services Inc., a Maryland bank holding company, in an all-stock deal valued at $94 million.

Under a definitive merger agreement, terms call for FNB to buy the Germantown-based company for $23.56 a share, or $94 million in the aggregate, using the 20-day average closing stock price of FNB as of Monday. OBA Financial owns OBA Bank which has six offices in Montgomery, Anne Arundel and Howard counties.

Shareholders of OBA Financial will get 1.781 shares of FNB common stock  for each common share of OBA Financial. The exchange ratio is fixed and the deal is expected to qualify as a tax-free exchange for OBA shareholders.

The deal will expand FNB’s footprint in Maryland’s Interstate 270 corridor. In February, Hermitage-based FNB closed a $79 million deal to buy BCSB Bancorp Inc. that was headquartered in Baltimore.

OBA Financial, a 162-year-old institution, has $390 million in total assets, $290 million in total deposits and $300 million in loans. Once this latest deal is completed, which is expected by the third quarter, FNB will have $1.2 billion in deposits and 31 branches 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,’’ Vincent J. Delie Jr., FNB’s president and chief executive officer, said in a news release. “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.’’

The common stock of OBA Financial trades on the NASDAQ National Market System under the symbol: OBAF.

A diversified financial holding company, FNB has total assets of $14.2 billion with more than 280 banking offices throughout Pennsylvania, Ohio, West Virginia and Maryland. The company is best known locally for its First National Bank of Pennsylvania affiliate, which also is based in Hermitage. FNB also owns Regency Finance Co., which has more than 70 consumer finance offices in Pennsylvania, Ohio, Kentucky and Tennessee.

FNB’s stock closed Tuesday at $13.07, down 21 cents or 1.57 percent. The company’s announcement to buy FNB was made before the stock market opened.

1
Text Only
Business