- First Commonwealth Financial ( NYSE: FCF ) said Tuesday it will acquire Centric Financial ( OTCPK:CFCX ) in an all-stock deal valued at ~$16.20/share, or ~$144M, expanding its Pennsylvania footprint.
- CFCX shareholders will receive a fixed exchange ratio of 1.09 shares of FCF stock for each CFCX share.
- Excluding one-time merger charges, the deal is expected to be ~5% accretive to FCF's earnings in 2023, and ~7% accretive to earnings in 2024 once anticipated cost savings are fully phased in.
- Estimated tangible book value dilution at closing of ~3%, including impact of estimated one-time charges, is expected to be earned back in ~2 years.
- Once the deal closes, FCF will appoint CFCX CEO Patricia Husic to its board.
- CFCX's unit Centric Bank will merge with FCF's subsidiary First Commonwealth Bank.
- The combined company is expected to have ~$10.6B in total assets.
- CFCX will contribute ~$1B in total assets, $0.9B in total deposits, $0.9B in total loans, seven branch locations and one loan production office in the Harrisburg, Philadelphia and Lancaster MSAs to the combined entity.
- The merger, which is expected to qualify as a tax-free reorganization, will be completed in Q1 2023.
For further details see:
First Commonwealth to acquire Centric Financial in $144M all-stock deal