US-based bank holding company FNB has secured all regulatory approval for the UB Bancorp deal, which is valued at $117m.

As per the deal, first announced in June this year, FNB will buy UB Bancorp and its wholly-owned subsidiary Union Bank.

The merger is anticipated to strengthen FNB’s presence in the North Carolina market where it will operate at around 100 locations post-merger.

In a statement, FNB said that the Federal Reserve System board of governors and the Office of the Comptroller of the Currency (OCC) have cleared the FNB-UB Bancorp deal, which includes the merger of Union Bank into FNB bank’s subsidiary National Bank of Pennsylvania.

The merger is an all-stock transaction, which entitles UB Bancorp stockholders to receive 1.61 shares of FNB common stock for each UB Bancorp common stock they own.

As of 31 March 2022, Greenville, North Carolina-based Union Bank had nearly $1.2bn in assets, $1bn in deposits and $700m in total loans. 

Union Bank operates 15 full services branches across Eastern and Central North Carolina. 

The merged entity will have around $43bn in assets, $35bn in deposits and $29bn in total loans.

The proposed merger, which has already received approval from UB Bancorp shareholders, is expected to close in December this year.

In July last year, FNB signed a definitive agreement to buy Howard Bancorp in an all-stock deal valued at around $418m.