F.N.B. in Pittsburgh has agreed to acquire 17 branches in the Pittsburgh area from Fifth Third Bancorp.
Financial terms were not disclosed. The deal is expected to close early next year, pending regulatory approval, according to news releases from both companies Thursday.
With the sale, the $142 billion-asset Fifth Third will exit Pennsylvania. Fifth Third was the 13th-largest bank in metro Pittsburgh, measured by retail deposit market share, as of June 30, 2014, according to the Federal Deposit Insurance Corp.
F.N.B., the $16.6 billion-asset holding company for the First National Bank of Pennsylvania, would obtain $383 million of retail and private banking deposits tied to the branches. F.N.B. also would get the branch locations and loan relationships associated with the branches. The branches are located in Pittsburgh, as well as other towns, including Canonsburg, Murraysville, North Versailles and Upper Saint Clair.
Fifth Third said the branch sale is consistent with the plan it announced in June to close or sell 130 branches and other properties. Fifth Third, which is based in Cincinnati, would retain some business in Pittsburgh, including wealth management, institutional services and mortgage originations.
F.N.B. last month agreed to buy the $3 billion-asset Metro Bancorp in Harrisburg, Pa., to expand in central Pennsylvania.
Deutsche Bank Securities is Fifth Third's financial adviser on the branch deal, and Debevoise & Plimpton is its legal counsel. RBC Capital Markets is advising F.N.B., and Reed Smith is its legal counsel.