FNB Corporation and Comm Bancorp have signed a definitive merger agreement pursuant to which FNB Corporation will acquire Comm Bancorp, the Pennsylvania-based holding company and parent of Community Bank and Trust Company, in a stock and cash transaction valued at approximately $70m.
Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, shareholders of Comm Bancorp will be entitled to receive a fixed exchange ratio of 3.4545 shares of FNB Corporation common stock and $10 in cash for each share of Comm Bancorp.
The acquisition of the Clarks Summit-headquartered bank will provide FNB. Corporation with $642m in total assets, including $577m in total deposits and $465m in loans in 15 bank branches across five counties in Northeastern Pennsylvania.
Stephen Gurgovits, CEO of FNB Corporation, said: “This move is a logical step in our announced strategy to expand into Eastern Pennsylvania and in markets with attractive demographics and long-term growth potential. The communities served by Comm Bancorp are very well positioned to benefit from the major demographic and commercial trends associated with the Marcellus Shale.”