Key Takeaways
Peoples Bancorp Inc. (NASDAQ: PEBO) will acquire Citizens National Corporation (OTCPK: CZNL) for approximately $76.6 million, a move that expands its banking footprint in Eastern Kentucky while keeping the combined entity just under a key $10 billion regulatory asset threshold.
"We are pleased to expand our footprint in Kentucky through the acquisition of an exceptional franchise in Citizens Bank of Kentucky," Tyler Wilcox, President and Chief Executive Officer of Peoples, said. "Citizens' low-cost deposits and high level of balance sheet liquidity allow us to not only strengthen the Peoples' deposit base but to also maintain the flexibility to remain under $10 billion in assets."
Under the terms of the agreement, Citizens' shareholders will receive 2.10 shares of Peoples common stock and $8.00 in cash for each share of Citizens' common stock. The transaction implies a deal value of $78.39 per share and is expected to be immediately accretive to Peoples' earnings, with a tangible book value earnback of less than one year and an internal rate of return over 20 percent.
The acquisition brings Peoples $586 million in deposits and $686 million in assets from Citizens, strengthening its balance sheet and market position ahead of a potential dividend increase. The transaction is slated to close in the second half of 2026, pending regulatory and Citizens' shareholder approvals, which will integrate Citizens' 12 branches into Peoples Bank.
Leisha Maynard, President and Chief Executive Officer of Citizens, added, "We are looking forward to joining an outstanding organization that will continue our strong culture and believe this partnership will deliver meaningful value to our shareholders as well as to our customers and the communities we serve."
As of March 31, 2026, Peoples had $9.6 billion in total assets. The addition of Citizens' assets will bring the combined company closer to the $10 billion mark, a level at which banks face stricter regulatory scrutiny and caps on interchange fees.
Peoples was advised by Raymond James & Associates, Inc. and the law firm of Vorys, Sater, Seymour and Pease LLP. Citizens was advised by Forvis Mazars Capital Advisors, LLC and the law firm of FBT Gibbons LLP, with Hovde Group, LLC providing a fairness opinion.
This article is for informational purposes only and does not constitute investment advice.
