First Commonwealth to Expand Its Presence in the Pittsburgh Market With the Acquisition of Laurel Capital Group, Inc.
27 Aprile 2006 - 11:35PM
PR Newswire (US)
INDIANA, Pa., April 27 /PRNewswire-FirstCall/ -- First Commonwealth
Financial Corporation (NYSE:FCF), the holding company for First
Commonwealth Bank, and Laurel Capital Group, Inc. (NASDAQ:LARL),
the holding company for Laurel Savings Bank, announced today the
execution of a definitive agreement under which Laurel Capital
Group, Inc. ("Laurel Capital"), would merge into First Commonwealth
Financial Corporation ("First Commonwealth"), to be followed
immediately by the merger of Laurel Savings Bank into First
Commonwealth Bank. Under terms of the merger agreement, Laurel
Capital shareholders can elect to receive $28.25 in cash, an
equivalent value of First Commonwealth common stock or a
combination of cash and First Commonwealth stock in exchange for
their shares of Laurel Capital common stock, subject to proration
to ensure that 70% of the aggregate merger consideration will be
paid in First Commonwealth common stock and 30% in cash. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030416/FIRSTLOGO) The merger
was unanimously approved by the Boards of Directors of First
Commonwealth and Laurel Capital. The merger is expected to be
completed during the third quarter of 2006, subject to customary
conditions, including the receipt of regulatory approvals and the
approval of Laurel Capital shareholders. First Commonwealth expects
the transaction to be accretive to earnings in the first full year.
Joseph E. O'Dell, President and Chief Executive Officer of First
Commonwealth, stated, "We are excited with this opportunity to
further expand our presence in the Pittsburgh market. Laurel
Capital's markets provide us another step to our in-market growth
strategy and the results of the transaction will provide
substantial growth opportunities." Edwin R. Maus, President and
Chief Executive Officer of Laurel Capital, commented, "We are
pleased to be joining one of the premier financial services
companies headquartered in Pennsylvania. We believe that this
transaction provides our shareholders with significant immediate
value as well as the opportunity to participate as shareholders in
a significantly larger institution. The merger also improves our
ability to serve our customers and expands career opportunities for
our employees. We consider this a good transaction for our
shareholders and our other constituencies." First Commonwealth
Financial Corporation is a $5.9 billion bank holding company
headquartered in Indiana, Pennsylvania. It operates 100 retail
branch offices in 15 counties in western and central Pennsylvania
through First Commonwealth Bank, a Pennsylvania chartered bank and
trust company. Financial services and insurance products are also
provided through First Commonwealth Financial Advisors, Inc., and
First Commonwealth Insurance Agency. Laurel Capital Group, Inc.,
headquartered in Allison Park, Pennsylvania, is the holding company
of Laurel Savings Bank with total assets of $310 million, deposits
of $255 million, loans of $214 million and stockholders' equity of
$28 million at December 31, 2005. Laurel Savings Bank has eight
full service offices, including seven in Allegheny County and one
in Butler County. Sherman & Howard LLC served as First
Commonwealth's counsel, Janney Montgomery Scott LLC served as
Laurel's financial advisor and Elias, Matz, Tiernan & Herrick
LLP served as Laurel's counsel. Statements contained in this press
release that are not historical facts are forward-looking
statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such statements include but are not
limited to the expected impact of the merger on earnings, the
expected cost savings that can be realized after the merger, the
expected cost of the transaction and the expected closing date of
the merger. These statements are subject to risks and uncertainties
that could cause actual results to differ materially from estimated
results, including, without limitation, the satisfaction of all
conditions to the merger, including receipt of required regulatory
approvals and the approval of the merger by Laurel Capital
shareholders, and First Commonwealth's ability to successfully
integrate Laurel Savings Bank into First Commonwealth Bank and to
achieve the desired cost savings on a timely basis. Additional
risks and uncertainties are detailed in First Commonwealth's
filings with the Securities and Exchange Commission. ADDITIONAL
INFORMATION ABOUT THE MERGER AND WHERE TO FIND IT First
Commonwealth intends to file with the SEC a proxy
statement/prospectus and other relevant materials in connection
with the merger. The proxy statement/prospectus will be mailed to
the shareholders of Laurel Capital. Before making any voting or
investment decision with respect to the proposed merger, investors
and shareholders of First Commonwealth and Laurel Capital are urged
to read the proxy statement/prospectus and the other relevant
materials when they become available, because they will contain
important information about First Commonwealth, Laurel Capital and
the proposed merger. You will be able to obtain a free copy of the
proxy statement/prospectus, as well as other filings containing
information about First Commonwealth and Laurel Capital, at the
SEC's website at http://www.sec.gov/. Copies of the proxy
statement/prospectus and the SEC filings that will be incorporated
by reference in the proxy statement/prospectus can be obtained,
without charge, upon request to the Secretary of First Commonwealth
Financial Corporation, Old Courthouse Square, 22 North Sixth
Street, PO Box 400, Indiana, PA 15701-0400, (724)349-7220, or the
Secretary of Laurel Capital Group, Inc., 2724 Harts Run Road, PO
Box 69, Allison Park, PA 15101-1437, (412) 487-7404. This press
release may be deemed to be solicitation material with respect to
the proposed merger of First Commonwealth and Laurel Capital.
Laurel Capital and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from the
shareholders of Laurel Capital in connection with the proposed
merger. Information about the directors and executive officers of
Laurel Capital and their ownership of Laurel Capital common stock
is set forth in the proxy statement, dated September 26, 2005, for
Laurel Capital's 2005 annual meeting of shareholders, as filed with
the SEC. Additional information about the interests of those
participants may be obtained from reading the definitive proxy
statement/prospectus regarding the proposed merger and the other
relevant documents filed with the SEC when it becomes available.
Transaction Summary Purchase Price per Share $28.25 Aggregate
Consideration 70% First Commonwealth Common Stock and 30% Cash
Aggregate Transaction Value $57.5 million Market Premium 27% (as of
4/26/06 closing price) Price to LTM Earnings 28.3 X Price to Book
2.02 X Price to Tangible Book 2.28 X Anticipated Closing Third
Quarter 2006 Anticipated Transaction Cost $2.2 million Anticipated
Cost Savings $2.0 million annually (33%) Required Approvals Board
of Governors of the Federal Reserve System, FDIC, Pennsylvania
Department of Banking, and Laurel Capital Group, Inc. Shareholders
Advisor to Laurel Janney Montgomery Scott LLC Strategic Rationale
In-Market Geographic Expansion - Continues First Commonwealth's
branch expansion plans into higher growth/more densely populated
markets - Strengthens First Commonwealth's presence in the
Pittsburgh area. Market Synergies - Expected to enhance First
Commonwealth's position as one of the consistently ranked top SBA
lenders in the western Pennsylvania area - Trust, insurance,
financial planning services, and on-line banking will be available
to a wider range of customers Financial Impact Favorable -
Accretive to GAAP and cash earnings in first full year - Expected
cost efficiencies in operations and overlapping functions -
Leverage capital base - Increased dividend to Laurel shareholders
(73%) (based on First Commonwealth's annualized dividend) -
Increased liquidity for Laurel Capital shareholders receiving First
Commonwealth stock
http://www.newscom.com/cgi-bin/prnh/20030416/FIRSTLOGO
http://photoarchive.ap.org/ DATASOURCE: First Commonwealth
Financial Corporation CONTACT: John J. Dolan, Executive Vice
President and Chief Financial Officer of First Commonwealth
Financial Corporation, +1-724-349-7220; or John A. Howard, Senior
Vice President and Chief Financial Officer of Laurel Capital Group,
Inc., +1-412-487-7404
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