F.N.B. Corp. has agreed to acquire fellow Pennsylvania bank Comm Bancorp Inc. for $70 million of cash and stock as part of the company's expansion efforts into the eastern part of the Keystone State.
F.N.B. Chief Executive Stephen J. Gurgovits called the move "a logical step," saying, "The communities served by Comm Bancorp Inc. are very well positioned to benefit from the major demographic and commercial trends associated with the Marcellus Shale." That is a hot natural-gas drilling area.
Comm holders would get $10 and 3.4545 shares of F.N.B. for each share they own, valuing Comm at $40.33, a 56% premium to Monday's closing price.
Comm has $642 million of assets and 15 branches in five counties of northeastern Pennsylvania. F.N.B., which expect the deal to immediately add to earnings, has $8.8 billion of assets.
Shares of both companies were inactive after-hours.
