Peoples in Ohio to enter Ky. with First Prestonsburg acquisition
Peoples Bancorp in Marietta, Ohio, has agreed to buy First Prestonsburg Bancshares in Kentucky.
The $4 billion-asset Peoples said in a press release Monday that it will pay $45.4 million for the $310 million-asset First Prestonsburg, which includes a special dividend to the seller’s shareholders. The deal, which is expected to close in the second quarter, priced First Prestonsburg at 161% of its tangible book value.
Peoples will enter Kentucky when the deal is completed.
First Prestonsburg has eight branches, $139 million in loans and $244 million in deposits.
“We are excited to expand our presence in eastern Kentucky through the acquisition of First Prestonsburg, a high-quality institution with an extremely strong core deposit base,” Chuck Sulerzyski, Peoples’ president and CEO, said in the release. “We believe it will complement our insurance operation in Pikeville and provide us with an opportunity to leverage existing client relationships.”
Greg Wilson, president of First Prestonsburg’s bank, will become Peoples’ Kentucky market president.
The transaction is expected to be immediately accretive to Peoples’ earnings before one-time costs. It should take two years for Peoples to earn back any dilution to its tangible book value.
Peoples said it plans to cut about a third of First Prestonsburg’s annual noninterest expense. The company expects to incur about $9 million in merger-related expenses.
Peoples was advised by Raymond James and Dinsmore & Shohl. First Prestonsburg was advised by ProBank Austin and Stoll Keenon Ogden.