Peoples Financial Services and rival American bank holding company FNCB Bancorp have secured all the mandated regulatory approvals or waivers to close their previously announced merger deal.
The all-stock merger deal, which was announced in September 2023, is valued at around $129m. In March this year, shareholders of the two bank holding firms gave their approvals to the merger.
As per the terms of the transaction, FNCB Bancorp will merge into Peoples Financial Services with the latter being the surviving entity. The merger is expected to create a bank holding company with assets of around $5.5bn and a combined market capitalisation of nearly $444m.
Upon closing of the merger, the FNCB Bancorp’s shareholders will exchange each of their shares with 0.146 shares of Peoples Financial Services. The share exchange ratio will give an ownership of around 71% for Peoples Financial Services and 29% for FNCB Bancorp in the enlarged entity.
The merger, which is still subject to the meeting of customary closing conditions, is expected to be finalised on 1 July 2024.
Listed on Nasdaq, Peoples Financial Services is the bank holding company of Peoples Security Bank and Trust Company (Peoples Bank).
Peoples Bank operates independently as a community bank, serving retail and commercial customers through 28 full-service banking offices spread across multiple counties in New Jersey and Broome County, New York.
FNCB Bancorp, which is also listed on Nasdaq, serves as the bank holding company for FNCB Bank, a community bank rooted in Northeastern Pennsylvania for over 114 years.
FNCB Bank currently operates through 16 community offices, offering a range of personal, small business, and commercial banking solutions.
The headquarters of the merged holding company, Peoples Financial Services, will be situated in Scranton, Pennsylvania. On the other hand, the combined bank which will operate as Peoples Security Bank and Trust will be headquartered in Dunmore, Pennsylvania.
