Peoples Financial Services has completed the previously announced merger deal with rival American bank holding company FNCB Bancorp, resulting in a combined entity with a market capitalisation of nearly $444m.
Announced in September 2023, the all-stock deal is valued at about $129m. As per the terms of the transaction, FNCB Bancorp merged into Peoples Financial Services with the latter being the surviving organisation.
The combined organisation is anticipated to have nearly $4bn in loans and deposits of $4.7bn. Its operations span the three US states of Pennsylvania, New York, and New Jersey.
Peoples Financial Services and Peoples Bank CEO and director Craig Best said: “The completion of this merger unites two dynamic institutions to create a leading, $5.6 billion community bank with operations in Pennsylvania, New York and New Jersey.
“The combination of Peoples and FNCB will benefit our customers and the communities we serve, create new opportunities for our employees and drive long-term growth and shareholder value.”
In accordance with the terms of the deal, FNCB Bancorp’s shareholders will exchange each of their shares with 0.146 shares of Peoples Financial Services. The share exchange ratio results in an ownership of nearly 71% for Peoples Financial Services and 29% for FNCB Bancorp in the enlarged bank holding company.
Listed on Nasdaq, Peoples Financial Services is the bank holding company of Peoples Security Bank and Trust Company (Peoples Bank).
Peoples Bank has been operating as an independent community bank, serving retail and commercial customers through 28 full-service banking offices located across several counties in New Jersey and Broome County, New York.
Prior to the merger, FNCB Bancorp, formerly listed on Nasdaq, functioned as the bank holding company for FNCB Bank, a community bank rooted in Northeastern Pennsylvania for over 114 years. FNCB Bank operates 16 community offices, providing an array of personal, small business, and commercial banking services.
Upon completion of integration, all branches of the combined entity will operate under the Peoples banner. The consolidated company will be traded under the ticker symbol PFIS on the Nasdaq Global Select Stock Market.
Peoples Financial Services and Peoples Bank president Jerry Champi said: “FNCB Bank’s merger with Peoples Bank marks a significant milestone in our journey.
“This union brings together two institutions with deep roots in community banking. Our customers will benefit from expanded products and services delivered by the familiar faces they have come to know and trust. Together, we will provide an even better banking experience for everyone.”
