Peoples, FNCB Bank announce merger
Sep. 28—Peoples Security Bank and Trust Co. and FNCB Bank will merge in a transaction expected to close in the first half of 2024.
Peoples Financial Services Corp. of Scranton and FNCB Bancorp of Dunmore, the bank holding companies of Peoples and FNCB Bank, respectively, announced Wednesday that they will merge under a definitive agreement unanimously approved by the boards of both companies.
The combined bank will operate under the Peoples Security Bank and Trust Co. brand, according to the announcement. The merger creates a bank holding company located in Scranton with almost $5.5 billion in assets and a combined market capitalization of about $444 million.
The all-stock merger is valued at roughly $129 million. Upon the merger's completion, FNCB shareholders will receive 0.1460 shares of Peoples common stock for each share of FNCB common stock they own.
"This strategic merger accelerates our objective of creating a dynamic, top-tier Pennsylvania franchise in order to help our communities become a better place to live and work while offering the best services possible to our customers," Peoples Director and CEO Craig Best said in the announcement, noting the close relationship between both management teams and boards of directors. "Notably, this transaction will create a more diversified and liquid balance sheet, which will enable the combined company to accelerate its organic growth strategy."
Best will serve as CEO for the combined bank and bank holding company, which will operate as Peoples Financial Services Corp. and trade under the Peoples ticker symbol "PFIS" on the Nasdaq Stock Market.
FNCB President, Director and CEO Gerard Champi will be president of the merged holding company and bank.
"We are excited to partner with Peoples with whom we share a strong strategic vision," Champi said in the announcement. "Due to the high degree of familiarity between our businesses, we believe that our combined management teams can leverage the benefits of both of our banks' strengths to build long-term value for our customers, shareholders, communities, and employees."
Company officials expect Best to retire as CEO one year after the merger closes, with Champi moving into that role.
The combined bank holding company's board will have 16 directors, eight from Peoples and eight from FNCB. William E. Aubrey II, Peoples' current chairman, will lead the combined board. FNCB's current chairman, Dunmore businessman Louis DeNaples, will serve as vice chairman.
FNCB Bank has been locally based since 1910, when it was established as the First National Bank of Dunmore. It changed its name to First National Community Bank in 1988 and reorganized a decade later as a one-bank holding company, First National Community Bancorp Inc. First National Community Bank changed its name to FNCB Bank in 2016.
It operates 16 community offices in Lackawanna, Luzerne and Wayne counties.
Peoples started as the First National Bank of Hallstead in 1905. Peoples Security Bank and Trust Co. is the product of a 2013 merger of Peoples Neighborhood Bank and Penn Security Bank and Trust Co.
The bank's 28 offices are located in Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna and Wyoming counties in Pennsylvania, Middlesex County in New Jersey and Broome County in New York.
Attempts to reach Peoples and FNCB officials directly were unsuccessful.
Contact the writer: jhorvath@timesshamrock.com; 570-348-9141; @jhorvathTT on Twitter.
