F.N.B. Corporation ( FNB ) is moving forward
with its strategy to grow through acquisitions. The company
announced a deal to acquire Baltimore-based BCSB Bancorp,
Inc. ( BCSB ) and its
subsidiary Baltimore County Savings Bank in an all-stock
transaction.AMERIS BANCORP (ABCB): Free Stock Analysis
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FNB stated that the deal is valued at about $79 million. Moreover,
under the terms of the agreement, shareholders of BCSB Bancorp will
receive 2.08 shares of FNB for each share of BCSB Bancorp.
The transaction is expected to be complete in the first quarter of
2014. Further, while the board of directors of both the companies
has approved it, the deal is still subject to regulatory approvals
and the consent of BCSB Bancorp's shareholders.
The transaction will significantly enhance FNB's presence in
Baltimore metropolitan statistical area with the addition of BCSB
Bancorp's 16 banking offices. Moreover, upon completion, FNB would
be receiving BCSB Bancorp's total deposits worth about $560 million
and $320 million of loans. Moreover, the deal will be marginally
accretive to the company's earnings (excluding one-time transaction
cost of nearly $16.4 million) in the first full year, while having
a neutral impact on its tangible book value per share.
Over the last couple of years, FNB has been on an acquisition
spree. In Apr 2013, the company closed an all-stock deal to buy
Annapolis Bancorp Inc. for about $51 million.
Earlier in February this year, FNB announced an all-stock deal to
buy Ohio-based PVF Capital Corp. ( PVFC ) for about
$106.4 million. In Jan 2012, the company completed the acquisition
of Parkvale Financial Corporation, while in Jan 2011 it acquired
Comm Bancorp, Inc.
We believe that FNB will continue with its strategy to expand
through acquisitions. The company's stable capital position and
strong balance sheet will support its growth plan in the
Currently, FNB carries a Zacks Rank #3 (Hold). However, other
Southeast banks such as Ameris Bancorp ( ABCB ) with a Zacks
Rank #1 (Strong Buy) are more favorably placed.