FNB Corp. has announced plans for yet another acquisition, as the Hermitage bank continues to grow by buying smaller institutions.
OBA Financial Services Inc., the Germantown, Md.-based parent of OBA Bank, has agreed to an all-stock transaction valued at about $23.56 per share, or $94 million, according to an announcement this morning. The value was calculated using the 20-day average closing stock price of FNB Corp.
The deal is expected to add about $390 million in total assets, $290 million in total deposits, $300 million in loans and six banking locations, according to the announcement.
FNB, which operates under the First National Bank banner, last year expanded its Maryland presence with the acquisition of Baltimore County Savings Bank and its 16 branch offices in the Baltimore region and the acquisition of BankAnnapolis and its eight offices.
The OBA deal is expected to give FNB more of a presence along the Interstate 270 corridor 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., president and CEO of FNB Corp., said in a prepared statement.
The deal calls for giving OBA shareholders 1.781 shares of FNB for each share of OBA. The transaction is expected to qualify as a tax-free exchange for OBA shareholders, according to this morning’s announcement.
Expected to close in the third quarter, the deal will need certain regulatory approvals and OBA shareholder approval.
FNB shares were trading at $13.43 per share just before 10 a.m. this morning, up 5 cents.
OBA shares traded at $22.94, up $4.52 in early trading after the acquisition was announced.