F.N.B. Corporation and Seminole Bank Announce Merger Agreement

Strategic Insights -

F.N.B. Corporation and Seminole Bank have jointly announced the signing of a definitive agreement to combine Seminole Bank with Indian Rocks National Bank, one of F.N.B.'s Florida affiliates. As part of the agreement, Seminole Bank shareholders will receive 1.457 shares of F.N.B. Corporation common stock for each share held, resulting in a total value of approximately $29 million. The combined bank is expected to have assets totaling around $200 million, with Indian Rocks National Bank bringing in $100 million and Seminole Bank contributing $94 million in assets as of December 31, 1997. The merger is subject to regulatory review and Seminole shareholder approval.

Key Takeaways:

  • The merger between F.N.B. Corporation and Seminole Bank is valued at approximately $29 million, with Seminole Bank shareholders receiving 1.457 shares of F.N.B. Corporation common stock for each share held.
  • The combined bank is expected to have assets totaling around $200 million, with Indian Rocks National Bank contributing $100 million and Seminole Bank contributing $94 million in assets as of December 31, 1997.
  • Peter Mortensen, Chairman and Chief Executive Officer of F.N.B. Corporation, stated that the combination of the two banks will allow for the expansion of F.N.B.'s franchise in Pinellas County.
  • F.N.B. Corporation recently reported record earnings of $33.1 million for 1997, a 67 percent increase over a year earlier.
  • The affiliation of Seminole Bank will bring F.N.B.'s total assets to approximately $3 billion, with the company operating nine community banks and a consumer finance company through 106 offices in Pennsylvania, Ohio, Florida, and New York.
  • No layoffs are expected as a result of the merger, with the company planning to consolidate two neighboring offices of the new bank.
  • The merger is subject to regulatory review and Seminole shareholder approval.

Statistics:

  • The total value of the transaction: approximately $29 million
  • Number of shares of F.N.B. Corporation common stock issued: 827,229
  • Assets of Seminole Bank as of December 31, 1997: $94 million
  • Assets of Indian Rocks National Bank as of year-end 1997: $100 million
  • Expected assets of the combined bank: approximately $200 million
  • Earnings per share for F.N.B. Corporation in 1997: $2.30 (basic) and $2.18 (diluted)
  • Return on assets for Seminole Bank: 1.4 percent
  • Return on equity for Seminole Bank: 13.8 percent

Sources:

  • F.N.B. Corporation (PRNewswire, February 2, 1998)
  • Seminole Bank (PRNewswire, February 2, 1998)
  • Indian Rocks National Bank (PRNewswire, February 2, 1998)
  • F.N.B. Corporation (Nasdaq: FBAN)