FNB Receives Final Regulatory Approval for Howard Bank Merger
PITTSBURGH, Pa. — FNB Corp., parent of First National Bank of Pennsylvania, has received final regulatory approval for its proposed merger with Howard Bancorp Inc., which includes the merger of its Howard Bank subsidiary into First National Bank.
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Maryland Office of the Commissioner of Financial Regulation gave final clearance for the merger, FNB announced Tuesday.
Pending certain routine and customary closing conditions, as well as a special meeting vote on Nov. 9 by Howard stockholders, the merger would strengthen FNB’s presence in its Mid-Atlantic Region, with the combined organization projected to assume the sixth largest deposit share position in Baltimore, Md., according to the release. FNB continues to expect the merger to be 4% accretive to earnings per share with fully phased-in cost savings on a GAAP basis and expects the merger to enhance FNB’s profitability metrics.
Additionally, FNB anticipates the tangible book value per common share impact to be minimal and expects the CET1 ratio to remain unchanged on a pro forma basis at closing.
The boards of FNB and Howard previously approved the agreement. As announced July 13, Howard stockholders will be entitled to receive 1.8 shares of FNB common stock for each share of Howard common stock they own. The exchange ratio is fixed, and the transaction is expected to qualify as a tax-free exchange for Howard’s stockholders.
Published by The Business Journal, Youngstown, Ohio.