Peoples Bank to nearly double Kentucky footprint in $208.2M acquisition

Dive Brief:

Marietta, Ohio-based Peoples Bank will acquire Louisville, Kentucky-based Limestone Bank in a $208.2 million all-stock deal, the banks said Tuesday.
The acquisition, set to close in the second quarter of 2023, will nearly double Peoples’ footprint in Kentucky, adding 20 locations to a bank that already has 25 branches in the state.
Adding Limestone will boost Peoples’ asset total by $1.5 billion and give the bank an extra $1.1 billion in loans and $1.2 billion in deposits, the banks said Tuesday.

Dive Insight:

Once the transaction is complete, Peoples Bank will have $8.5 billion in assets, $5.7 billion in loans and $7.1 billion in deposits across a 150-branch footprint in Ohio, Kentucky, West Virginia, Maryland, Virginia and Washington, D.C.

Peoples CEO Chuck Sulerzyski touted the deal for giving his bank “entrance into strategically important markets in Kentucky.”

“We view Limestone's corporate culture and philosophy as very similar to our own … and we are ecstatic to offer additional locations to new and existing Peoples Bank clients,” Sulerzyski said.

Limestone CEO John Taylor expressed enthusiasm over new services his staff will be able to offer customers — particularly insurance and investment products.

“Our shareholders, customers and employees will benefit from Peoples' track record of profitable growth and successfully executing acquisitions, and the opportunities this merger of our banks offers,” Taylor said. “Peoples' community banking model, culture and commitment to high-quality customer service makes Peoples an excellent partner for Limestone."

Peoples Bank is a somewhat frequent acquirer. Limestone would be the fourth bank it has acquired since 2018, according to American Banker. But the bank has sought to diversify its business lines of late, picking up multiple insurance brokers among several nonbank acquisitions. Peoples in February agreed to acquire Minnesota-based equipment financing company Vantage Financial in a $54 million cash deal.

In Tuesday’s transaction, Limestone shareholders would receive 0.90 shares of Peoples’ stock for each Limestone share they hold. That equates to $208.2 million, based on Peoples' $30.28-per-share closing price from Friday.