Peoples State Bank in Albia, Iowa, has agreed to acquire a branch from Iowa City's MidWestOne Bank.

The $92 million-asset Peoples State Bank will buy MidWestOne's branch in Ottumwa, Iowa. The branch holds $35 million in deposits and $20 million in assets, according to a Monday news release.

Financial terms were not disclosed. The banks expect the transaction to close in the fourth quarter.

The branch will be Peoples State Bank's second location, in addition to its headquarters in Albia, which will allow the bank to expand services, Chief Executive Kevin Kness said in the release.

“This is a terrific opportunity for Peoples State Bank to grow into the Ottumwa area,” Kness said.

The $1.7 billion-asset MidWestOne will exit the Ottumwa market with the sale.

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