F.N.B. to acquire Omega

By DON SHILLING

VINDICATOR BUSINESS EDITOR

HERMITAGE, Pa. — F.N.B. Corp. has signed a deal to acquire a banking company based in State College, Pa., for $393 million in stock.

Hermitage-based F.N.B. would become the fifth-largest bank holding company in Pennsylvania after acquiring Omega Financial Corp.

Omega Financial has $1.8 billion in assets and operates Omega Bank, which has 64 branches in 13 counties, and leasing, insurance, financial planning and mortgage subsidiaries.

F.N.B. has $6.1 billion in assets and operates First National Bank of Pennsylvania and other subsidiaries.

Stephen Gurgovits, F.N.B. president and chief executive, said Omega’s size and locations fit into the local company’s expansion plans in central Pennsylvania. F.N.B. last year acquired a bank holding company based in Harrisburg, Pa.

Gurgovits added that Omega has solid deposits, diversified sources of revenue and a strong track record of customer service.

The deal calls for that company’s shareholders to receive 2.022 shares of F.N.B. stock for each share of Omega stock.

F.N.B. stock gained 7 cents Friday to close at $15.47, while Omega stock gained $4.34 to close at $30.56.

The merger has been approved by boards of directors of both companies. Still needed are approvals from regulators and shareholders of both companies. The merger is expected to be completed in the second quarter of next year.

F.N.B. said it expects the deal to add to its earnings in the first full year.

F.N.B. said it expects to run Omega’s operations at a 30 percent cost savings by eliminating duplications in administrative functions.

Donita Koval, president and chief executive of Omega Financial, will become regional president and chief executive of First National Bank’s new Omega region. Four Omega board members will join the board of First National Bank, and three Omega board members will join the F.N.B. board.

F.N.B. has 145 branches and 22 consumer finance offices in Pennsylvania, 11 branches and 15 consumer finance offices in Ohio, one loan production office and 16 consumer finances offices in Tennessee and five loan production offices in Florida.

shilling@vindy.com