F.N.B. to buy bank in eastern North Carolina

F.N.B. in Pittsburgh has agreed to buy UB Bancorp in Greenville, N.C. 

The $42 billion-asset F.N.B. said in a press release Wednesday that it will pay $117 million in stock for the $1.2 billion parent of Union Bank. The deal, which is expected to close late this year, priced UB Bancorp at 154% of its tangible book value. 

Union, which once was known as little bank, has 15 branches, $1 billion of deposits and $700 million of loans. 

F.N.B. entered the Carolinas in 2017. 

The acquisition “represents another step in our continued investment in North Carolina,” Vincent Delie Jr., F.N.B.’s chairman, president and CEO, said in the release. 

“North Carolina has proven to be a growth engine for our company, and this new partnership … will further leverage our investments in the market and accelerate our organic growth potential,” Delie added. 

F.N.B. said it expects the merger to be about 2% accretive to its earnings per share, including cost savings. The company said it expects less than 1% dilution to its tangible book value. 

F.N.B. plans to cut about 45% of UB Bancorp’s annual noninterest expenses. The company expects to incur $17 million of merger-related expenses.

BofA Securities and Reed Smith advised F.N.B. Piper Sandler and Fenimore Kay Harrison advised UB Bancorp.