Peoples Community Bancorp Inc. of West Chester, Ohio, has agreed to buy American State Corp., of Lawrenceburg, Ind., for about $7.7 million.
The deal, announced late Friday, would take the $891 million-asset Peoples into Indiana for the first time. It would pay $4.79 in cash for each share, and American's outstanding preferred stock would be redeemed for $700,000 cash at par value. The deal price is equal to about two times American's book value.
The sale is expected to close in the second quarter.
American has $67.5 million of assets and three branches. It also has trust operations that Peoples' treasurer, Thomas J. Noe, said the buyer would use as a "template" for building a trust business in its existing markets.
Peoples is waiting for regulatory approval for its deal to buy 38% of the outstanding shares of the $62.7 million-asset Columbia Bancorp Inc. of Cincinnati for $2.5 million.
