Peoples Financial Services (NASDAQ: PFIS) has announced its plans to acquire FNCB Bancorp (NASDAQ: FNCB) in an all-stock deal worth $129.0 million. The deal values FNCB at $6.44 per share. Upon completion of the merger, FNCB shareholders will receive 0.1460 shares of Peoples stock for each FNCB share they own. The post-merger shareholder ownership split will be approximately 71% for Peoples and 29% for FNCB.
The combined company, with Peoples’ current CEO Craig Best at the helm, will have assets of nearly $5.5 billion and a market capitalization of approximately $444 million. The transaction is projected to deliver 59% earnings per share (EPS) accretion to Peoples by 2025, with a tangible book value earn-back period of 2.4 years. The merged bank holding company will trade under the ticker symbol “PFIS” on the Nasdaq.
Additionally, Peoples plans to increase its quarterly dividend to $0.6175 per share, or $2.47 per share on an annual basis, without creating any dilution for FNCB shareholders. The post-closing annual cash dividend for Peoples is expected to be over 51% higher than current levels. The deal is anticipated to close in the first half of next year.
In summary, Peoples Financial Services has agreed to acquire FNCB Bancorp in an all-stock deal valued at $129.0 million. The merger will result in a combined company with significant assets and market capitalization. The transaction is expected to bring substantial EPS accretion to Peoples and an increased dividend for shareholders. The deal is set to be finalized in the first half of the following year.