HERMITAGE, Pa., April 25 — After expanding its franchise south in 2004 with acquisitions in the Pittsburgh and Butler County areas, today F.N.B. Corporation moves north to the attractive Erie market with the signing of a definitive agreement to acquire North East Bancshares, Inc. of North East, PA in Erie County. The stock transaction is valued at $15.5 million.
Under the terms of the merger agreement, shareholders of North East will be entitled to receive $107.00 in common stock of F.N.B. It is anticipated that the transaction will be completed during the fourth quarter of 2005, pending regulatory approvals and the approval of shareholders of North East.
"Our team has done a tremendous job building the F.N.B. presence in Erie. And now, instead of building new branches, we are able to improve our opportunities for future growth by merging with a respected, established community-focused organization," said Stephen J. Gurgovits, President and Chief Executive Officer of F.N.B. Corporation. "Our customers in Erie will benefit from additional convenient locations combined with the talent and experience of the North East staff and management team."
"North East's offices in Harborcreek and North East will help solve F.N.B.'s east Erie County strategic issue by giving us a presence that we were missing in that part of the market," added Tom Wedzik, President and CEO of the Erie Region. "This transaction also strengthens our west side presence with the addition of a new modern full-service branch on West 8th Street."
"We could not have found a better organization with which to merge," noted David B. Hartman, President and Chief Executive Officer of North East. "Our shareholders will acquire shares of a New York Stock Exchange-traded company recognized for its generous dividend payout. Our staff will have more opportunities for advancement as part of a larger organization, and our customers will now enjoy added convenience with more branches and a wider array of financial services from which to choose. In addition, F.N.B. shares North East's focus on the community."
Based upon a $107.00 per share value, the transaction price represents 229% of North East's book value per share. It is anticipated that the merger will be immediately accretive to F.N.B. earnings per share.
