FNB Corp. to buy Ohio bank
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FNB Corp., the third biggest retail bank in the Pittsburgh region by deposits, said Tuesday it was expanding its presence in Cleveland with an agreement to buy Park View Federal Savings Bank in an all-stock transaction valued at about $3.98 per share, or $106.4 million.
The acquisition of the Solon, Ohio-based bank will give Hermitage-based FNB another 16 offices, $634 million in deposits and $782 million in assets in the Cleveland metro area. FNB currently has just three offices and deposits of about $60 million in that region, according to Federal Deposit Insurance Corp. figures.
The transaction is expected to close in the third quarter, pending regulatory approvals.
"With the addition of Park View, we believe we have significantly enhanced our ability to pursue commercial and consumer prospects in the greater Cleveland market," FNB CEO Vincent J. Delie Jr. said in a prepared statement.
Park View has 1.2 percent of deposits in the Cleveland area for a No. 14 market share. KeyBank is No. 1 there followed by PNC Bank.
Although it is a small player in Cleveland, FNB has the No. 2 market share in the nearby Youngstown, Ohio, region, behind No. 1 Huntington Bank.
In 2009, Park View was placed under a regulatory order requiring it to improve its shaky financial condition by raising capital and reducing bad loans.
The order was lifted last summer after the bank met regulators' benchmarks.
The bank turned a profit in the last two quarters after losing money in the fiscal years that ended June 30, 2012 and 2011.
Park View shares, which trade under the symbol PVFC, rose $1.30 Tuesday, or 52 percent, to close at $3.82. FNB shares finished at $11.83, down 21 cents, or 2 percent.
First Published February 20, 2013 12:10 am