S&T Bancorp has signed definitive agreement to acquire DNB Financial in an all-stock deal valued around $206m.
As a part of the agreement, DNB Financial’s banking unit DNB First will merge into S&T Bank.
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DNB Financial acquisition: Details
All DNB shareholders will receive 1.22 shares of S&T stock for each share of DNB stock, as per the agreement.
The acquisition is expected to significantly expand S&T’s footprint in South-eastern Pennsylvania. The acquisition is also aligned with the bank’s strategy to bolster its presence in Pennsylvania, Ohio and New York.
Once complete, S&T will have around $8.4bn in total assets.
DNB First, which was established in 1860, offers consumer and business banking products and services through 14 locations.
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By GlobalDataDNB president and CEO William Hieb said: “This combination represents a great opportunity for DNB’s four constituents – our shareholders, customers, communities, and employees; it is a natural cultural fit.
“S&T is a high performing company, as evidenced by its superior earnings and consistently high dividend payments, proven management team and 100-plus year history of responsiveness to the customers and communities it serves.
“With S&T, our customers will continue to enjoy all the benefits of a relationship-driven bank, with access to continued technology investments, expanded lending capacity, and a deeper and broader range of financial products and services.”
S&T expects that the transaction will be accretive to its earnings per share in 2020.
The DNB Financial acquisition is expected to complete during the fourth quarter of this year. The completion is subject to usual closing conditions including regulatory approvals and DNB shareholders’ consent.
