F.N.B. Corp. has announced a capital action plan this week to position the company for implementation of a series of new federal regulations that could take effect as soon as next year.
F.N.B., the parent company of First National Bank, said it intends to raise $50 million of common equity and up to $100 million of perpetual preferred stock with the new sale.
The company also said the stock sale will support future growth opportunities. The sale is to “proactively position itself” for Basel III implementation, it said in a news release.
Basel III is an new set of regulations for large banks that were finalized in July but are still being updated. They will be phased in, depending on the size of the organization, in 2014 or 2015, the Federal Reserve Board said.
One recent additional regulation to Basel III is a one-year transition period for most banks holding between $10 billion and $50 billion in assets. F.N.B. holds $12.8 billion in assets.
Basel III sets standards on how much common equity and capital a bank must have.
F.N.B. said it will price the 4.1 million shares of common stock it plans to sell at $12.25 per share. That sale is expected to raise approximately $47.3 million, with a 30-day option for underwriters to buy an additional 612,244 shares.
It plans to sale 4 million of its depository shares at $25 each, which is expected to raise about $96.7 million. There is also a 30-day option for underwriters to purchase an additional 600,000 of depository shares.
Both offerings are expected to close Friday.
Of the Hermitage-based bank’s 250-plus branches, four of them are in the midstate.
F.N.B. trades on the New York Stock Exchange under the ticker symbol FNB. News of the sale dropped the company’s stock price from $12.99 to $12.15 Tuesday morning, but late Wednesday morning it climbed back $12.57.