Peoples Bancorp of Marietta, Ohio Acquires Citizens Bank of Kentucky for $76.6 Million
Peoples Bancorp of Marietta, Ohio has announced its acquisition of Citizens Bank of Kentucky for approximately $76.6 million in cash and stock. The deal, which was revealed last week, signifies a significant expansion for Peoples Bancorp in the banking sector.
Details of the Merger
Citizens Bank, headquartered in Paintsville, eastern Kentucky, will merge into Peoples’ wholly owned subsidiary, Peoples Bank. This merger is anticipated to be finalized in the second half of 2026. With the acquisition of Citizens Bank, Peoples will gain an additional 12 branches and $686 million in total assets, further bolstering its presence in the market.
However, to comply with regulatory changes and stay under the $10 billion threshold, Peoples will be selling Citizens’ entire securities portfolio and approximately $300 million of its own securities when the transaction is completed.
Impact on Peoples Bancorp
The proceeds from the sale will be utilized by Peoples to pay down some of its overnight and wholesale borrowings, amounting to around $560 million. This restructuring will enable Peoples to maintain its organic growth prospects for the remainder of 2026 and ensure that the bank’s crossing of the $10 billion asset threshold remains on track.
Peoples Bancorp’s CEO, Tyler Wilcox, expressed enthusiasm about the acquisition, emphasizing the opportunities it will bring for expanding the bank’s footprint, products, and services for customers. Wilcox highlighted the strategic value of Citizens Bank’s locations and its strong deposit base, which will enhance Peoples’ offerings in Kentucky.
Regulatory Considerations
By acquiring Citizens Bank, Peoples Bancorp is strategically positioning itself to navigate the regulatory landscape and delay the implications of crossing the $10 billion asset threshold. This threshold triggers additional regulations, including oversight from the Consumer Financial Protection Bureau and restrictions on interchange fees.
Peoples’ proactive approach to preparing for this milestone has involved investments in systems, infrastructure, talent, and governance to seamlessly transition to a $10 billion bank when the time comes.
Merger Agreement and Future Outlook
The merger agreement between Peoples Bancorp and Citizens Bank has received unanimous approval from both companies’ boards of directors. As per the agreement, Citizens’ shareholders will receive 2.10 shares of Peoples common stock plus $8 in cash for each share of Citizens’ common stock.
Based on Peoples’ 20-day volume-weighted average price per share, the aggregate deal value is estimated to be around $76.6 million. The completion of the deal is subject to various closing conditions, including regulatory approvals and the shareholders’ consent from Citizens Bank.
In conclusion, the acquisition of Citizens Bank of Kentucky marks a significant milestone for Peoples Bancorp of Marietta, Ohio, positioning the bank for continued growth and expansion in the competitive banking landscape.
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