Share This Page

FNB to expand in Ohio with $106M acquisition

| Tuesday, Feb. 19, 2013, 10:53 a.m.

FNB Corp., the Pittsburgh region's third-largest bank, said Tuesday it will acquire Park View Federal Savings Bank in Ohio for $106.4 million — a deal that will expand its presence in the Cleveland market.

The all-stock transaction is the second acquisition in four months for the parent of First National Bank. It underscores a push by the bank to grow its retail banking business, which is concentrated in Western Pennsylvania, and beef up its commercial lending operations.

“I'd expect we'll continue to grow, provided the deals meet the criteria we have,” such as return on capital, CEO Vincent Delie Jr. said in a phone interview. “We're looking across our footprint, in eastern Ohio, across Pennsylvania and in eastern Maryland.”

FNB, based in Hermitage, Mercer County, has more than 250 branches in Pennsylvania, Ohio and West Virginia. The deal would add 16 Park View branches in the Cleveland area. Delie said that all 16 likely will remain open but an unspecified number of administrative jobs will be cut.

Park View, which has 200 employees, ranks among the top 15 banks in the Cleveland market by total deposits, but it is dwarfed by such players as Key Bank, PNC Bank and Huntington National Bank.

“FNB has competed well against PNC in Pittsburgh, so they will do fine in Cleveland,” said Matthew Schultheis, an analyst at Boenning & Scattergood in West Conshohocken.

FNB, which will add Park View's $782 million in assets to its $12 billion, announced a deal in late October to acquire Annapolis Bancorp Inc., an eight-branch bank in eastern Maryland.

It acquired Parkvale Savings Bank of Monroeville in January 2012, which added about 40 branches in Western Pennsylvania.

“The Cleveland and Annapolis deals are exactly the types of deals FNB should be doing. They are not swinging for the fences, but grinding it out with singles and doubles,” said Matthew Breese, an analyst at Sterne Agee & Leach in Portland, Maine.

About 95 of First National Bank's branches are in the seven-county Pittsburgh area. The bank operates three branches in the Cleveland market,

The transaction, which has been approved by both banks' boards, is expected to be completed in the third quarter, pending approval by regulators and stockholders of Park View parent PVF Capital Corp.

Park View had been under a regulatory order from 2009 until mid-2012 because of bad loans and other credit-quality issues. But “those problems are over,” said Breese, and FNB was “very conservative” in how it valued Park View's loan portfolio.

The “main driver” behind the Park View deal was FNB's prospects for commercial lending in Cleveland, Delie said. He had been a corporate banker for Cleveland-based National City Bank before its 2008 acquisition by PNC.

Delie said the bank will hire commercial bankers in Cleveland and expand Park View's offerings with wealth management and insurance products and services.

“We have done a number of (merger) transactions; it's really a core competency,” said Delie. “Parkvale is a prime example, where we consolidated 17 branches and still grew our deposits.”

Thomas Olson is a staff writer for Trib Total Media. He can be reached at 412-320-7854 or at tolson@tribweb.com.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.