By Lisa Kerner
Charlotte, N.C., Feb. 15 - F.N.B. Corp. agreed to acquire Iron & Glass Bancorp, Inc. for some $86.1 million.
Both companies' boards of directors approved a definitive merger agreement that gives Iron & Glass Bancorp shareholders either $75 cash or 5 shares of F.N.B. common stock for each share of Iron & Glass Bancorp, subject to proration of 45% cash and 55% stock if either cash or stock is oversubscribed.
"F.N.B. Corp. represents an ideal partner for us with its strong dividend and proven culture of strong localized customer service offering an exceptional array of financial service products for commercial and consumer clients," Iron & Glass chairman Daniel A. Goetz said in a company news release.
The transaction is slated to close in the third quarter, subject to shareholder approval.
F.N.B. expects the merger to be accretive to its earnings per share in the first full year of operation.
As previously reported, Omega Financial Corp. and F.N.B. shareholders will vote on F.N.B.'s acquisition of Omega on March 19.
Their merger agreement calls for Omega shareholders to receive 2.022 shares of F.N.B. common stock for each share of Omega common stock.
Omega Financial is the holding company for Omega Bank and is located in State College, Pa.
Iron & Glass Bancorp is the Pittsburgh-based holding company and parent of Iron & Glass Bank.
F.N.B., through its subsidiaries, provides various financial services to consumers and small to medium-sized businesses in Pennsylvania, Ohio and Tennessee. The company is based in Hermitage, Pa.
| Acquirer: | F.N.B. Corp.
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| Target: | Iron & Glass Bancorp, Inc.
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| Announcement date: | Feb. 15
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| Transaction total: | $86.1 million
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| Price per share: | $75.00 cash or 5 shares of F.N.B. common stock
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| Expected closing: | Third quarter of 2008
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| Stock price for acquirer: | NYSE: FNB: $14.92 on Feb. 14
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| Stock price of target: | OTC Bulletin Board: IRGB: $53.00 on Feb. 14
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