F.N.B. Corp. (FNB) in Hermitage, Pa., is planning to raise $150 million to prepare for new Basel III capital standards.
The $12.8 billion-asset company plans to offer $50 million of common stock and up to $100 million of perpetual preferred stock, it announced Monday. It will use the proceeds to implement Basel II requirements, buy back trust-preferred debt and support future growth, it said.
The underwriters of the common stock sale, J.P. Morgan Securities, Keefe, Bruyette & Woods and RBC Capital Markets, will be given the chance to buy an additional 15% of the shares sold.
U.S. banking regulators released their final Basel III capital rules in July, and the rules are set to take effect in January. The rules will require all banks to have a common equity Tier 1 capital ratio of 4.5%, a Tier 1 capital ratio of 6% and total capital of 8% of risk-weighted assets.
F.N.B. had a total risk-based capital ratio of 12.2%, a Tier 1 risk-based capital ratio of 10.7% and a leverage ratio of 8.4% as of the end of the third quarter.
The bank acquired PVF Capital in Cleveland this month, and has a pending deal to acquire BCSB Bancorp (BCSB) in Annapolis, Md.