Northwest Ohio-based Farmers & Merchants Bancorp, Inc., is acquiring west central Ohio-based Peoples-Sidney Financial Corp., and its wholly-owned subsidiary, Peoples Federal Savings and Loan Association, in a $27 million stock-and-cash transaction.
As of March 31, the Sidney, Ohio-based Peoples Federal had $132.7 million in total assets, nearly $100 million in loans, $114.8 million in deposits and $15.4 million in tangible common equity. Following the transaction, the Archbold, Ohio-based Farmers & Merchants will grow to $2.8 billion, and operate 21 offices, a drive-up facility and an LPO in Ohio; a dozen offices and an LPO in Indiana; and an LPO in Michigan. The bank will have a total of $2.4 billion in deposits and $2.1 billion in loans.
“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,” said F&M President and CEO Lars Eller. The acquisition is Farmers & Merchants’ fifth since the end of 2018, including four community banking organizations and a complementary financial services company. Eller said the acquisitions, along with organic growth, has enabled F&M to grow at a 33 percent compound annual clip on a pro forma basis over the last 3 1/2 years.
F&M expects the transaction to be approximately 2.5 percent and 3.9 percent accretive to estimated 2023 and 2024 diluted earnings per share, respectively.
Peoples President and CEO Debra Geuy said both organizations share “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.”
F&M is being advised by Piper Sandler & Co., Minneapolis, and Shumaker, Loop & Kendrick LLP, Toledo, Ohio. Peoples is being advised by Boenning & Scattergood, West Conshohocken, Penn., and Vorys, Sater, Seymour and Pease LLP, Columbus, Ohio.