US-based bank holding company FNB has signed a definitive merger agreement to acquire UB Bancorp and its wholly-owned subsidiary Union Bank to strengthen its presence in North Carolina.
Based on FNB’s stock price on 31 May 2022, the all-stock transaction is valued at around $117m.
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Under the terms of the agreement, UB Bancorp shareholders will receive 1.61 shares of FNB common stock for each UB Bancorp common stock held.
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.
The lender operates 15 full services branches across Eastern and Central North Carolina.
Following the deal closure, FNB is expected to have nearly $43bn in assets, $33bn in deposits and $28bn in loans.
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By GlobalDataFNB chairman, president, and CEO Vincent Delie, Jr. said: “Our partnership with Union Bank represents another step in our continued investment in North Carolina with proforma deposits growing to over $7bn since we entered the market in 2017.
“North Carolina has proven to be a growth engine for our company, and this new partnership with Union Bank will further leverage our investments in the market and accelerate our organic growth potential.”
The deal, subject to receipt of regulatory approval, is expected to close in late 2022.
Union Bank will be merged with and into FNB’s subsidiary First National Bank of Pennsylvania.
Union Bank chairman Lee Burrows said: “In FNB, we have found a like-minded partner committed to building meaningful relationships with its clients and communities, and we look forward to working together as FNB continues to expand in the Carolinas.
“Our partnership will add meaningful scale and access to a comprehensive product offering and broader in-market expertise that we believe will result in an enhanced customer experience for our clients.”
In July 2021, Pennsylvania-based FNB brokered a $418m deal to buy Howard Bancorp.
