Peoples Community Bancorp Inc. said Friday that its wholly owned bank has consented to a directive that requires the bank to merge, be acquired, or sell all or substantially all of its assets.

The bank is currently categorized by the Office of Thrift Supervision as a "critically undercapitalized" depository institution, according to a filing with the Securities and Exchange Commission. Such a designation requires the bank to comply with the order that seeks to make the bank be considered at least "adequately capitalized."

The bank said May 18 that it has entered into a purchase and assumption agreement with First Financial Bancorp's (FFBC) wholly owned subsidiary First Financial Bank.

The agreement provides for the purchase of certain of Peoples Community's assets, including 17 branch offices, about $260 million of business and consumer loans and other assets, the assumption of about $310 million of the bank's deposits and certain other liabilities.

Following completion of the proposed transaction, Peoples Community expects to be considered well capitalized.

Shares of the West Chester, Ohio-based company closed Friday at 75 cents, up 8.7%.

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