FNB to Consolidate 20 Branches, Sell Regency Finance Co.

PITTSBURGH – F.N.B. Corp. announced Wednesday that it will sell its consumer finance subsidiary, Regency Finance Co., and consolidate up to 20 branches of its retail banking subsidiary, First National Bank.

The company has entered into a definitive stock purchase agreement to sell 100% of the issued and outstanding capital stock of Regency Finance Co. to Mariner Finance, LLC.

Regency Finance Co. operates 77 branch offices in Pennsylvania, Ohio, Kentucky and Tennessee with total assets of $170 million as of March 31.

With the consolidation of up to 20 branches throughout its footprint in 2018, F.N.B. has accelerated the branch optimization program it has had in place for many years, the company said. The program is designed to increase efficiency and improve growth prospects for the bank as customer preferences for mobile and other technology-based services evolve.

F.N.B.’s optimization includes opening new locations in areas identified for their potential to foster relationship growth and to serve clients and community needs.

The sale of Regency Finance Co. is expected to close during the second half of 2018, subject to receipt of regulatory approvals and other customary closing conditions.

F.N.B. Corp. expects this transaction, in combination with the bank branch consolidations, to accomplish the following strategic objectives:

  • Improve the operating efficiency of its retail delivery channel.
  • Enhance the credit risk profile of the consumer loan portfolio.
  • Result in the sale of a non-strategic business segment that does not fit with its core business.
  • Offer additional liquidity.
  • Offset branch consolidation costs through the gain on sale.
  • Achieve neutral impact to run-rate earnings and capital.

Sandler O’Neill & Partners, L.P. acted as financial advisor and Reed Smith LLP served as legal counsel to F.N.B. Corp. for the Regency Finance Co. transaction. Wachtell, Lipton, Rosen & Katz served as legal counsel to Mariner Finance, LLC on the transaction.

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