By Lisa Kerner
Charlotte, N.C., Dec. 17 - S&T Bancorp, Inc. agreed to acquire IBT Bancorp, Inc. in a move designed to expand S&T Bancorp's existing footprint in Pennsylvania's Westmoreland and Allegheny Counties.
In addition, Irwin Bank will merge with and into S&T Bank, with S&T Bank as the surviving bank, according to a news release.
The stock and cash deal is valued at $171 million. IBT shareholders will receive $31 per share in cash or between 0.93 and 0.97 of a share of S&T Bancorp common stock, subject to proration.
In addition, the merger agreement includes termination rights for both IBT and S&T Bancorp and a termination fee of $6.5 million payable by IBT under certain circumstances.
The merger is expected to close in the second quarter of 2008.
"Partnering with an organization such as S&T Bancorp, Inc. is a great strategic opportunity," IBT president and chief executive officer Charles G. Urtin said in the release.
"We are well aligned when it comes to culture, serving the customer, offering a wide array of products and financial services as well as an ongoing commitment to providing good returns to shareholders."
Stifel Nicolaus & Co., Inc. advised S&T Bancorp, while Sandler O'Neill + Partners LP advised IBT.
S&T Bancorp is the holding company for S&T Bank. The company is based in Indiana, Pa.
Irwin, Pa.-based IBT is the holding company for Irwin Bank.
| Acquirer: | S&T Bancorp, Inc.
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| Target: | IBT Bancorp, Inc.
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| Announcement date: | Dec. 17
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| Transaction total: | $171 million
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| Price per share: | $31 cash or between 0.93 and 0.97 of a S&T Bancorp share
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| Termination fee: | $6.5 million
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| Expected closing: | Second quarter of 2008
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| Stock price for acquirer: | Nasdaq: STBA: $28.85 on Dec. 14
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| Stock price of target: | AMEX: IRW: $19.19 on Dec. 14
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