By Ben Glickman
Peoples Financial Services Corp. will merge with FNCB Bancorp in an all-stock deal valued at $129 million.
The Scranton, Pa.-based bank said Wednesday shareholders of FNCB would receive 0.146 shares of Peoples for each share of FNCB they own, resulting in an implied price per share of $6.44 based on the 20-day volume weighted price of Peoples’ stock.
Peoples shareholders will own about 71% of the new company after the merger. The deal is expected to close in the first half of 2024.
The combined company will have nearly $5.5 billion in assets and a market cap of about $444 million. It will operate under the name Peoples Financial Services Corp.
The deal is expected to deliver 59% earnings per share accretion to Peoples 2025 anticipated earnings per share, the company said.
Peoples Chief Executive Craig Best will continue to serve in that role for the combined company, while FNCB CEO Gerard Champi will serve as president.
Best would retire as CEO about one year after the merger closes, according to Peoples, at which point Champi will become CEO.
Write to Ben Glickman at ben.glickman@wsj.com
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