Union Bank operates 15 full-service banking offices in Eastern and Central North Carolina, with around $1.2bn in total assets, $1bn in total deposits, and $0.7bn in total loans as of 31 March 2022
FNB to acquire UB Bancorp. (Credit: aymane jdidi from Pixabay)
F.N.B. Corporation (FNB) has signed a definitive merger agreement to acquire UB Bancorp, together with its wholly-owned banking subsidiary Union Bank, in an all-stock transaction worth around $117m.
The deal is valued at $19.56 per share based on the closing price of FNB shares as of 31 May 2022.
Under the agreement, UB Bancorp shareholders will receive 1.61 shares of FNB common stock for each share of UB Bancorp common stock held.
The transaction has been unanimously approved by the Boards of Directors of both companies.
It is expected to close in late 2022, subject to satisfaction of customary closing conditions, including regulatory approvals and the approval of UB Bancorp’s stockholders.
Upon closing of the transaction, Union Bank will merge with and into First National Bank of Pennsylvania, a subsidiary of FNB.
With the merger of Union Bank on a proforma basis, FNB will have total assets of around $43bn, deposits of $35bn, and total loans of $28bn.
Union Bank chairman Lee Burrows said: “Union Bank’s guiding principal is that of a local bank delivering personalized customer service to our clients.
“In FNB, we’ve found a like-minded partner committed to building meaningful relationships with its clients and communities, and we look forward to working together as FNB continues to expand in the Carolinas.
“Our partnership will add meaningful scale and access to a comprehensive product offering and broader in-market expertise that we believe will result in an enhanced customer experience for our clients.”
Based in North Carolina, Union Bank operates 15 full-service banking offices in 12 counties located throughout Eastern and Central North Carolina.
The bank holds nearly $1.2bn in total assets, $1bn in total deposits, and $0.7bn in total loans as of 31 March 2022.
FNB said that the merger will further strengthen its presence in North Carolina.
The company expects the merger to be around 2% accretive to earnings per share with fully phased-in cost savings in addition to enhancing its profitability metrics.
BofA Securities served as financial advisor and Reed Smith as legal counsel to FNB, while Piper Sandler & Co. served as financial advisor and Fenimore Kay Harrison as legal counsel to UB Bancorp, on the transaction.
FNB Corporation chairman, president and chief executive officer Vincent J Delie Jr. said: “FNB and Union Bank share a deep cultural commitment to the clients and communities we serve.
“Our partnership with Union Bank represents another step in our continued investment in North Carolina with proforma deposits growing to over $7bn since we entered the market in 2017.
“North Carolina has proven to be a growth engine for our Company, and this new partnership with Union Bank will further leverage our investments in the market and accelerate our organic growth potential.”
In July last year, FNB has agreed to acquire Howard Bancorp in an all-stock transaction valued at around $418m.