Peoples in Ohio to buy Citizens National in Kentucky

Peoples Bancorp in Marietta, Ohio, has agreed to buy Citizens National in Paintsville, Ky.

The $9.6 billion-asset Peoples said in a press release that it will pay $76.6 million in cash and stock for the $686 million-asset Citizens. The deal, which is expected to close in the second half of this year, priced Citizens at 118% of its tangible book value.

Citizens has 12 branches, $342 million in loans, and $586 million in deposits.

“Citizens’ low-cost deposits and high level of balance sheet liquidity allow us to not only strengthen the Peoples’ deposit base but to also maintain the flexibility to remain under $10 billion in assets,” Tyler Wilcox, Peoples’ president and CEO, said in the release.

The transaction is expected to be 5.6% accretive to Peoples’ 2027 earnings per share. It should take less than a year to earn back any dilution to Peoples’ tangible book value.

Peoples plans to cut 40% of Citizens’ annual noninterest expenses. It expects to incur $15.4 million of merger-related expenses.

Peoples was advised by Raymond James and Vorys, Sater, Seymour and Pease. Citizens was advised by Forvis Mazars Capital Advisors and FBT Gibbons. Hovde Group issued a fairness opinion to Citizens.