Farmers & Merchants Bancorp to acquire Peoples-Sidney Financial for $27m

Ohio-based Farmers & Merchants Bancorp has agreed to acquire Peoples-Sidney Financial Corporation (PPSF) in a stock and cash deal worth $27 million.

Peoples-Sidney Financial owns Peoples Federal Savings and Loan Association, which offers financial products and services.  Peoples Federal Savings and Loan Association is based in Sidney, Ohio.

As of 31 March 2022, Peoples-Sidney Financial had assets of $132.7 million, $99.9 million in loans, deposits of $114.8 million, and tangible common equity of $15.4 million.

Farmers & Merchants Bancorp, on the other hand, is the holding company for Farmers & Merchants State Bank.

The acquisition of Peoples-Sidney Financial extends the community banking franchise of Farmers & Merchants Bancorp into Sidney and neighboring markets in Shelby County.

Farmers & Merchants Bancorp to acquire Peoples-Sidney Financial for $27m. Photo courtesy of Gerd Altmann from Pixabay.

Following the closing of the deal, Farmers & Merchants Bancorp will have 21 offices, a drive-up facility, and a loan processing office (LPO) in Ohio, an LPO in Michigan, a dozen offices, and an LPO in Indiana.

On a pro forma basis, the deal would have increased Farmers & Merchants Bancorp’s total deposits to $2.4 billion, total loans to $2.1 billion, and total assets of $2.8 billion, as of 31 March 2022.

Lars Eller — President and CEO of Farmers & Merchants Bancorp said: “The combination of Peoples and F&M creates immediate value for our shareholders, customers, and communities and I am excited to expand F&M’s community-oriented banking in Sidney and greater Shelby County.

“This transaction is an excellent opportunity for Peoples to become part of a larger community banking organization that offers customers a wider range of financial services.”

As per the terms of the deal, shareholders of Peoples-Sidney Financial will exchange each of their shares in the company for either 0.6597 shares of Farmers & Merchants Bancorp’s stock or $24 per share in cash.

Debra A. Geuy — President and CEO of Peoples-Sidney Financial said: “We are very excited to be joining forces with F&M. The two organizations have similar community-focused cultures, and F&M’s scale, diversity, and expertise will dramatically enhance the services we will be able to offer to existing and new customers alike.

“We trust F&M’s experience of successfully completing and integrating community bank acquisitions and believe the combination will provide Peoples with the necessary resources to pursue compelling growth opportunities throughout our markets.”