Peoples Bank Unites With Premier Financial In All-Stock $292 Million Merger

Peoples Bancorp and Premier Financial Bancorp will join forces in an all-stock merger valued at approximately $292.3 million, according to a press release on Monday (March 29).

Chuck Sulerzyski, president and CEO of Peoples, said the merger with Premier will enhance profitability while advancing growth. “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, D.C.,” Sulerzyski said. “Over the years, we have successfully expanded our West Virginia and Kentucky footprint.”

Together, the newly combined company will have 136 deposit locations in Ohio, West Virginia, Kentucky, Maryland, Virginia and Washington, D.C. Total assets are anticipated to be about $6.7 billion and combined loans at approximately $4.6 billion.  With two community bank subsidiaries, Premier’s footprint spans five states in 38 municipalities operating 48 branches. By year-end 2020, the financial institution had $1.9 billion in consolidated assets. 

Bob Walker, president and CEO of Premier, said that Peoples is “one of the strongest banks in the region,” and that everyone — customers, employees, shareholders — will see perks from the tie-up. Peoples is said to have a long history “of profitable growth and expertise in successfully executing acquisitions,” as well as an expansive suite of products. “People’s community banking model, culture and commitment to high-quality customer service makes Peoples an excellent choice for Premier,” Walker said.    

The merger agreement, which was unanimously approved by the boards of directors of both companies, provides Premier shareholders with 0.58 shares of Peoples common stock for each share of Premier common stock. All told, the deal is anticipated to be valued at $292.3 million, or $19.69 per share. The acquisition should close during the third quarter of 2021, and Premier’s offices will become branches of Peoples Bank.

Last month, M&T Bank Corp was looking to acquire People’s United Financial for more than $7 billion. Between Peoples’ $6.6 billion value and M&T Bank’s over $19 billion value, the combined entity could have had over $142.6 billion in assets.