MARIETTA - Peoples Bancorp Inc., holding company for Peoples Bank, has signed a definitive agreement to acquire all of the outstanding common stock of Sistersville Bancorp Inc., holding company of First Federal Savings Bank, which operates two full-service branches in Sistersville and Parkersburg. The transaction will provide Peoples further growth opportunities in Parkersburg and an entry into the Sistersville market.
"We are pleased to add density to our existing West Virginia footprint while acquiring a strong franchise that complements our current growth strategy," said Chuck Sulerzyski, Peoples' president and CEO. "Stan Kiser and his team have done an excellent job serving First Federal clients and avoiding serious credit issues during the recent economic downturn. We are excited about the opportunity to provide our extensive product offering, including our unique deposit products, in the Sistersville market. We also believe our community orientation will be very beneficial for First Federal's customers."
Stan Kiser, chairman and CEO of Sistersville, commented, "We are excited to be affiliated with an outstanding community bank such as Peoples, and we believe this transaction will be very beneficial for our customers and community. Our customers will gain access to a greater array of products and services, including trust, brokerage, insurance and commercial loan products, while continuing to see the same high level service they have come to expect. We will also have a significantly larger lending limit, which will allow us to invest even more in our local communities."
Under the terms of the agreement, Peoples has agreed to pay $30.74 in cash for each share of Sistersville common stock for a total cash consideration of approximately $9.8 million. Peoples expects this acquisition to be accretive to its 2013 earnings.
The transaction is subject to customary closing conditions, including regulatory approvals and Sistersville shareholder approval, and is anticipated to be completed in the third quarter of 2012.
At that time, First Federal Savings' offices will become branches of Peoples Bank. At March 31, 2012, Sistersville Bancorp had total assets of $48 million, total loans of $28 million and total deposits of $38 million.