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FNB buying Maryland's BCSB Bancorp in $79M deal

HERMITAGE, Pa. (AP) -- The parent of First National Bank of Pennsylvania is buying BCSB Bancorp Inc. in an all-stock deal valued at about $79 million to expand its operations in Maryland.

BCSB's stockholders will receive 2.08 shares of FNB Corp. for each share they own. The companies value that at about $23.77 per share, 40 percent above BCSB's Thursday closing price of $16.97.

Shares of BCSB soared $5.51, or 33 percent, to $22.48 in Friday morning trading. FNB's stock shed 14 cents, or 1.2 percent, to $11.29.

Buying the Baltimore-based BCSB will give FNB an additional $640 million in assets and 16 banking offices in the greater Baltimore area. FNB currently operates in three major metropolitan areas: Pittsburgh, Baltimore and Cleveland, with about 250 banking offices in Pennsylvania, Ohio, West Virginia and Maryland. It has $12.4 billion in assets.

FNB expects that in the first year after the acquisition, it will get a slight bump in earnings per share when excluding one-time costs.

Both companies' boards have approved the deal, which is anticipated to close in the first quarter of 2014. The acquisition still needs the approval of BCSB shareholders.