Peoples Bancorp in Marietta, Ohio, has agreed to buy Premier Financial Bancorp in Huntington, W.Va.
The $4.8 billion-asset Peoples said in a press release Monday that it will pay $292.3 million in stock for the $1.9 billion-asset Premier. The deal, which is expected to close in the third quarter, priced Premier at 139% of its tangible book value.
Peoples will have 136 branches, $4.6 billion of loans and $5.5 billion of deposits after the deal closes.
“We are excited about our partnership with Premier and the addition of significant scale to enhance our ability to drive future growth and improved profitability,” Chuck Sulerzysi, the president and CEO of Peoples, said in the release.
“Premier’s strong core franchise provides a natural extension of our existing markets, as well as entry into attractive markets within Virginia, Maryland and Washington,” Sulerzyski added. “Over the years, we have successfully expanded our West Virginia and Kentucky footprint.”
Peoples said it expects the transaction to be immediately accretive to its earnings, before one-time costs. It should take less than three years for Peoples to earn back the expected dilution to its tangible book value.
Peoples said it plans to cut about 30% of Premier’s annual noninterest expense. The company expects to incur $23.7 million in merger-related expenses.
Peoples was advised by Raymond James and Dinsmore & Shohl. Premier was advised by Piper Sandler and the Jackson Kelly.
Peoples also announced that it will buy certain assets associated with North Star Leasing in Burlington, Vt., for $47.5 million, plus a potential earnout payment of up to $3.1 million. Peoples said it will acquire bout $84 million of leases and will satisfy, on behalf of North Star, certain third-party debt totaling about $69 million.
North Star originates, underwrites and services equipment leases to businesses across the country. The transaction is expected to close by the end of this month.
