INDIANA - S&T Bancorp Inc. and Mainline Bancorp Inc. have signed a definitive merger agreement for S&T to acquire Mainline in a stock and cash transaction.
Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, S&T will acquire all of the outstanding shares of Mainline for a total purchase price of about $21.5 million.
"We believe that Mainline's merger with our company will capitalize on a synergy between two similar cultures focused on providing exceptional customer service in the communities that they serve," Todd Brice, S&T president and CEO, said in a statement. "Through the incorporation of additional locations and talented individuals, this merger will also enable both of our companies to better serve our customers across western Pennsylvania."
Based in Ebensburg, Mainline has assets of $241.8 million and maintains eight branches. The transaction will expand S&T's existing business in Cambria and Blair counties. The combined company will have more than $4.3 billion in assets.
"Mainline National Bank has a long and proud history of serving its customers and its communities," said Mainline Chairman Dennis M. McGlynn said in a statement. "By becoming part of the S&T Bank family, our customers will have even greater access to a wide array of financial products and services."
With assets of $4.1 billion, S&T presently operates 50 offices in Blair, Cambria, Clearfield and seven other counties.
The transaction is expected to be completed in the first quarter of 2012, after regulatory approvals and the approval of Mainline shareholders.