WESTERN PA. F.N.B. Corp. action to expand its area

Slippery Rock shareholders will receive $78.5 million in cash and stock.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
HERMITAGE, Pa. -- F.N.B. Corp. is expanding its presence in western Pennsylvania by acquiring the parent company of First National Bank of Slippery Rock.
F.N.B., the Hermitage-based parent company of First National Bank of Pennsylvania, said today that it intends to acquire Slippery Rock Financial Corp. in a stock and cash transaction valued at $78.5 million.
The boards of directors of both companies have approved the deal, but it still must be approved by regulators and shareholders of Slippery Rock Financial Corp. The holding companies expect the deal to close in the fourth quarter of this year.
The Slippery Rock bank operates nine branches in Butler, Mercer and Lawrence counties. First National Bank of Pennsylvania has more than 120 branches in Pennsylvania and Ohio.
Kathryn Lima, F.N.B. spokeswoman, said Slippery Rock branches would be renamed but added that it's too early to talk about possible branch closings. Grove City is the only place where both banks have branches, she said.
She also said she didn't have any information on what would happen to the headquarters of the Slippery Rock. The bank employs 160 part-time and full-time workers.
What's in deal
Slippery Rock shareholders would be able to choose between $28 in cash or 1.41 shares of F.N.B. common stock for each share of Slippery Rock stock. The deal calls for 15 percent of Slippery Rock stock to be exchanged for cash and the rest to be exchanged for stock.
Slippery Rock stock closed Wednesday at $18.50. From July to October of last year, the stock rose from about $16 a share to $20 a share, but has declined since then.
F.N.B. said it expects the deal to add to its earnings next year.
Stephen Gurgovits, F.N.B. president and chief executive, said Slippery Rock's market fits well with First National Bank of Pennsylvania's market and is growing at rates faster than that of Pennsylvania as a whole.
William Sonntag, Slippery Rock president and chief executive, said the transaction provides its shareholders with significant value as well as the opportunity to participate in a larger institution. It also will improve services for customers and expand career opportunities for employees, he said.
The agreement calls for two members of the Slippery Rock board of directors to be added to the board of First National Bank of Pennsylvania.
shilling@vindy.com