Oct. 13, 2015, 2:36 PM
- With a sluggish economy and low rates making for a challenging banking environment, lenders are subject to growing ranks of shareholder activists, reports SNL Financial.
- A bank with an ROE in the 5-6% range when the cost of capital is closer to 9% or 10% is going to make for a ripe target, says RBC's Gerard Cassidy. And those activists have an ally in proxy advisory firms which have recently been in favor of the shareholders instead of management teams, says Sandler O'Neill's Emmett Daly. Daly notes the pending sale of Metro Bancorp (NASDAQ:METR) to F.N.B. Corp. (NYSE:FNB) - Metro went from having no activists to a handful. "I don't think anyone is too strong," says Daly.
- Other campaigns include Trian and Bank of New York Mellon (NYSE:BK) and State Street (NYSE:STT), Greenlight and Citizens Financial (NYSE:CFG) and CIT Group (NYSE:CIT), and Basswood and First California (NASDAQ:FCAL), Bank of California (NYSE:BANC), Hudson Valley Holding (NYSE:HVB), Synovus (NYSE:SNV), Astoria (NYSE:AF), and the above-mentioned Metro.
Aug. 4, 2015, 12:32 PM
- The purchase of Harrisburg-based Metro Bancorp (METR +22.8%) will boost F.N.B. Bancorp's (FNB -2.5%) central PA presence with $3B in total assets, $2.4B in deposits, $2.1B of loans, and 32 banking offices.
- After the deal, F.N.B. will have $19.6B in assets, $14.7B in deposits, $13.7B of loans, and more than 300 offices.
- Metro owners will receive 2.373 shares of FNB stock for each share of Metro they hold, valuing the deal at about $32.72 per share, or $474M.
- FNB expects EPS accretion in year one of 4% on a GAAP basis and 6% on a cash basis. Tangible book value per share is expected to be diluted by about 3%, with an earnback period of just under five years.
- Closing is expected in 2016's Q1.
- Conference call is set for 2 ET
Metro Bancorp Inc is a bank holding company. The Company through its banking subsidiary provides retail and commercial banking services for consumers and small and mid-sized companies.
Industry: Regional - Northeast Banks
Country: United States