ESB Financial Corp. in Pittsburgh is planning to buy SHS Bancorp in Ellwood City, Pa., for about $13.7 million of cash and stock.
The $981 million-asset parent of ESB Bank said it would exchange 1.3 share of its stock, or $17.80 in cash, for each share of SHS stock. ESB was trading at $13 a share at middafternoon Friday, and SHS stock was at $15.625.
SHS, which has $90 million of assets, is the parent of Spring Hill Savings Bank. When the deal is completed, the thrift's four branches - all in Allegheny County - would be merged into ESB Bank. Three of ESB's 11 branches are also in Allegheny County, where Pittsburgh is located.
"This acquisition enhances ESB Bank's presence in the local neighborhoods of Allegheny County, where a community bank is welcomed and supported," said Charlotte A. Zuschlag, president and chief executive officer at ESB.
The deal is expected to close by the first quarter.