F.N.B. Corp. (FNB) has reached a definitive merger deal to acquire OBA Financial Services, Inc. (OBAF), the Germantown, Maryland-based holding company and parent of OBA Bank, in an all stock deal worth about $23.56 per share, or $94 million in the aggregate, using the 20 day average closing stock price of F.N.B. Corp. as of Monday April 7, 2014.
The capital accretive transaction would further improve F.N.B. Corporation's presence in Maryland and expand the firm's footprint into the attractive Interstate 270 corridor. The deal is likely to add nearly 30 basis points to FNB's tangible common equity to tangible assets ratio at closing and provide FNB with an additional $390 million in total assets, $290 million in total deposits, $300 million in loans and 6 banking locations. Including OBA Financial Services, Inc., F.N.B. Corp. would have $1.2 billion in deposits and 31 branch locations in Maryland.
As part of the merger agreement, OBA Financial Services' shareholders would be entitled to receive 1.781 common shares of F.N.B. Corp. for each common share of OBA Financial Services, Inc. With fixed exchange ratio, the acquisition is expected to qualify as a tax-free exchange for shareholders of OBA Financial Services, Inc.
The deal may close in the third quarter of 2014. As is customary for F.N.B. Corp., the operations of OBA Financial Services, Inc. are likely to be fully integrated as of the transaction close date.
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