PNC Financial Services, a large northeast U.S. regional bank, on Thursday said it agreed to buy Yardville National for $403 million to expand in central New Jersey and eastern Pennsylvania.
Shareholders of Hamilton, New Jersey-based Yardville will receive 0.2923 of a PNC share and $14 in cash for each of their shares. The terms value Yardville at $35 per share, a 2% discount to the stock's Wednesday closing price of $35.77 on the Nasdaq.
The transaction is expected to close early in the fourth quarter and result in a $27 million after-tax charge to PNC in that quarter. Pittsburgh-based PNC, Pennsylvania's largest bank, expects the deal to add to earnings per share in 2008.