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FNB Closes Annapolis Deal

Zacks Equity Research

F.N.B. Corporation (FNB) continues to move forward with its inorganic growth strategy. The company has announced completion of the deal to acquire Annapolis-based Annapolis Bancorp Inc. on Apr 6.

All stock deal, announced in Oct 2012, was valued at roughly $12.09 per share or $51 million using the closing share price on Oct 19, 2012. Upon completion, FNB added 8 branches in Anne Arundel and Queen Anne's Counties in Md. Further, the shareholders of Annapolis received 1.143 shares of FNB for each share of Annapolis.

Additionally, FNB stated that Richard M. Lerner, who was Chairman and CEO of Annapolis, will provide transitional support as the Chairman of the newly established Md. Region. Further, J. MacGregor (Mac) Tisdale will serve as Market Executive and President of Md. Region and develop business opportunities in the high-growth markets in and around Annapolis.

Now the customers of Annapolis will have access to all the products and services being offered by FNB. Also, the customers can conduct their banking at any of the company’s more than 250 banking offices in Pa., Ohio, W. Va. and Md.

Over the last couple of years, FNB has announced and closed a number of deals. In Feb 2013, the company announced an all stock deal to buy Solon, Ohio-based PVF Capital Corp. (PVFC) and its subsidiary Park View Federal Savings Bank for about $106.4 million. Earlier in Jan 2012, the company completed the acquisition of Parkvale Financial Corporation, while in Jan 2011 it closed the deal to buy Comm Bancorp, Inc.

We believe that FNB will continue with its strategy to expand through acquisitions. The company’s stable capital position and strong balance sheet will support its growth plan, going forward.

Currently, FNB carries a Zacks Rank #3 (Hold). However, other south-east banks such as, Capital City Bank Group Inc. (CCBG) and Popular, Inc. (BPOP) are more favorably placed and carry a Zacks Rank #1 (Strong Buy).

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