Peoples Bancorp announces acquisition
MARIETTA – Peoples Bancorp, parent company of Peoples Bank, has announced the acquisition of Midwest Bancshares, the parent company of the First National National Bank of Wellston in Jackson County, Ohio.
The cash and stock transaction has a value of $12.6 million, or $65.50 per share.
“We are excited by this opportunity to expand our presence in southeastern Ohio by acquiring a strong franchise,” said Chuck Sulerzyski, president and CEO of Peoples. “This transaction complements the insurance acquisitions we completed in mid-2013 and our overall growth strategy.”
As of Dec. 31, Midwest Bancshares had $91 million in assets, which included $61 million in loans and $79 million in deposits. First National operates two full-service banking locations in Wellston and Jackson and three ATMs.
Under the terms of the agreement, shareholders of Midwest Bancshares will receive between 50 percent and 75 percent of the total consideration in the Company’s common stock and the remainder will be paid in cash, with the actual mix to be based on the elections of the shareholders of Midwest Bancshares and subject to proration. The exchange ratio for the stock component of the transaction will be determined based on the company’s average closing stock price during the 20 consecutive trading days immediately preceding the closing of the transaction.
“We believe this transaction will be very beneficial for our customers and community. Like First National, Peoples has a long-standing history of serving the financial needs of its customers and investing in the local communities,” Tony Thorne, president and CEO of Midwest Bancshares, said. “Our customers will continue to enjoy the same excellent service they experienced with First National, while gaining access to Peoples’ broader suite of products.”
The transaction is expected to be completed in the second quarter of this year, subject to customary closing conditions including regulatory approvals and the approval of the shareholders of Midwest Bancshares. At that time, First National’s offices will become branches of Peoples.
Peoples Bancorp Inc. has $2.1 billion in assets, 50 sales offices and 47 ATMs in Ohio, West Virginia and Kentucky.