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F.N.B. Corp. is betting the cybersecurity community in Maryland will drive demand for financing when it agreed to purchase Annapolis, Md.-based Annapolis Bancorp Inc. for $52.3 million.
The deal was disclosed Oct. 22 after markets closed and as the bank announced third-quarter earnings. Analysts dwelled on the deal during the question-and-answer portion of the Oct. 23 earnings call, trying to gather more details about the geographic shift in strategy. The $437 million Annapolis Bancorp and unit BankAnnapolis is a stretch for the Hermitage, Pa.-based bank, which has locations throughout Pennsylvania and eastern Ohio. Annapolis offers attractive demographics and cross-sell opportunities, as well as proximity to the Baltimore and Washington, D.C., metro areas. But the entrance of the bank into Annapolis might be the greatest opportunity for F.N.B., as it considers its ability to consolidate other banks in the area.
The deal, despite being 100% stock and valued at 1.65x tangible book value, is also neutral...