Minerva-based Consumers Bancorp Inc. is acquiring Peoples Bancorp of Mt. Pleasant Inc., which operates three banking offices in Mt. Pleasant, Dillonvale and Adena, Ohio.
As of March 31, Peoples Bank had approximately $79 million in assets, $53 million in loans and $70 million in deposits.
The transaction is expected to close in the fourth quarter of 2019. All of Peoples' directors have entered into voting agreements, representing approximately 20 percent of the total shares outstanding, to vote their shares in favor of the merger.
Consumers currently expects the merger to be approximately 8 percent to 9 percent accretive to earnings per share in fiscal year 2021, including fully realizing cost savings, and approximately 6.5 percent dilutive to tangible book value per share at closing with an earn back period of approximately four years.
"This combination is a great opportunity to expand and complement our market presence in the tri-county area of Jefferson, Harrison, and Belmont," Consumers President and CEO Ralph J. Lober said in a statement,
Peoples' Chairman and CEO Robert C. Hargrave said, "By joining forces with Consumers, Peoples National Bank's customers will not only retain very high levels of customer service, but will also gain access to a wider range of products and services as well as Consumers' larger lending limit."
Sandler O'Neill + Partners, LP is serving as financial adviser and Tucker Ellis is serving as legal adviser to Consumers. Boenning & Scattergood, Inc. is serving as financial adviser and provided a fairness opinion to Peoples. Dinsmore & Shohl LLP is serving as legal counsel to Peoples.
