Peoples Bancorp (PEBO) in Marietta, Ohio, has agreed to buy Ohio Heritage Bancorp (OHHB) in Coshocton.
Peoples said in a press release Friday that it will pay $37.6 million in cash and stock for Ohio Heritage, the parent of the $252 million-asset Ohio Heritage Bank. Ohio Heritage also has $182 million in loans and $183 million in deposits.
"We are pleased to be expanding our presence in Ohio and entering desirable new markets near major transportation routes," Chuck Sulerzyski, People's president and chief executive, said in the release. "Overall, this acquisition is a great strategic fit for our company and long-term growth plans. We believe it also is a low-risk opportunity that helps us achieve some of our strategic goals, such as improving our earning asset mix."
The $2.1 billion-asset Peoples said that 85% of the consideration involves stock. The company said it expects to complete the acquisition in the third quarter. Based on this timing, Peoples said the transaction should be neutral, or slightly accretive, to this year's diluted earnings per common share. Next year, the deal should boost annual earnings per share by 10 cents to 12 cents.
Peoples said the deal will likely dilute its tangible book value by roughly 2%, including restructuring charges, with an earnback period of about two years.