Pittsburgh-based Iron & Glass Bank, a local banking fixture for 137 years, is being swallowed up by FNB Corp. in Hermitage for approximately $86.1 million, FNB announced today.

Under terms of the deal, which has been approved by the boards of both companies, shareholders of Iron & Glass will receive either $75 in cash or five shares of FNB stock for each of their shares. The offering price represents a premium of more than 40 percent to Iron & Glass' closing price of $53 on Wednesday.

"This transaction fits perfectly with our strategic focus to increase our market share and expand our presence in Pittsburgh and throughout Allegheny County," said FNB's Stephen Gurgovits, chairman and chief executive officer of the $6.1 billion-asset bank.

Iron & Glass, headquartered on the South Side, has assets of about $300 million and eight branches.

The merger is expected to be completed in the third quarter, pending shareholder and regulatory approval, and add to FNB's earnings in the first year.

More details in tomorrow's Pittsburgh Post-Gazette.