FNB Corporation, a diversified financial services company in Pittsburgh, Pennsylvania, has agreed to acquire Harrisburg-based Metro Bancorp, the parent company of Metro Bank, in an all stock deal worth $474m.
Under the terms of the deal, shareholders of Metro will receive 2.373 shares of FNB common stock for each common share of Metro.
Following the completion of the deal, FNB will have $19.6bn in assets, including $14.7bn in total deposits, $13.7bn in total loans and over 300 banking offices.
Post-merger, one current Metro director will join the board of directors at FNB.
The transaction, approved by the board of directors of both companies, is expected to wrap up in the first quarter of 2016 following the receipt of regulatory and shareholder approvals.
Commenting on the deal, FNB CEO and president Vincent Delie, Jr. said: "We are very excited about this transaction and the significant scale it adds to our franchise in Central Pennsylvania.
"The meaningful size of this transaction will allow FNB to leverage the significant infrastructure investments we have made in the expansion of our product offerings and risk management systems. Additionally, Metro is a well-established institution with an excellent customer service culture and an attractive deposit base with modern branches in prime locations."