S&T Bancorp, the parent company of S&T Bank, has signed an agreement to acquire to DNB Financial, the holding company for DNB First, in an all-stock deal worth $206m (£162m).
Image: S&T Bancorp to acquire DNB Financial. Photo: Courtesy of Gerd Altmann/Pixabay
S&T Bancorp has its operations across five markets including Western Pennsylvania, Central Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York.
The merger will allow S&T Bancorp to expand its presence into Southeastern Pennsylvania, gaining a new presence in Chester, Delaware, and Philadelphia counties.
Upon completion of the deal, the combined company will have approximately $8.4bn (£6.6bn) in total assets.
S&T CEO Todd Brice said: “I am very pleased to announce our merger with DNB, a nearly 160-year-old institution which shares the values, culture and commitment to high quality customer service found at S&T Bank.
“Merging with such a venerable institution located in a growing Southeastern Pennsylvania market dovetails nicely with our expansion into the Central Pennsylvania market in 2015, and our overall strategic growth strategy focused on Pennsylvania, Ohio and New York.
“Alongside DNB’s seasoned staff, we look forward to building on the Bank’s legacy as well as working with existing and future clients.”
As per the merger agreement, shareholders of DNB Financial will each receive 1.22 shares of S&T for each share of DNB stock.
The transaction is expected to be completed in the last quarter of this year, after customary conditions such as regulatory approvals and closing conditions are met with. S&T expects the deal to be accretive to its earnings per share next year.
DNB president and CEO William Hieb said: “This combination represents a great opportunity for DNB’s four constituents – our shareholders, customers, communities, and employees; it is a natural cultural fit. S&T is a high performing company, as evidenced by its superior earnings and consistently high dividend payments, proven management team and 100-plus year history of responsiveness to the customers and communities it serves.
“With S&T, our customers will continue to enjoy all the benefits of a relationship-driven bank, with access to continued technology investments, expanded lending capacity, and a deeper and broader range of financial products and services.”