Ohio-based Farmers & Merchants Bancorp (F&M) has signed an agreement to acquire Peoples-Sidney Financial Corporation (PPSF).
The deal, valued at $27 million, will see F&M acquire PPSF and its wholly owned subsidiary, Peoples Federal Savings and Loan Association.
Peoples Federal Savings and Loan Association specializes in residential mortgage loans and agricultural loans. It also offers other forms of commercial and multi-family real estate loans, construction or development loans, and consumer and business lending.
The association has almost $100 million in loans and $115 million in deposits as of March 31, 2022, according to a statement from F&M.
Once finalized, the deal will see F&M broaden its banking services and operate 21 offices, a drive-up facility and a legal process outsourcing (LPO) in Ohio, 12 offices and an LPO in Indiana, and an LPO in Michigan. The acquisition will bring its total deposits to $2.4 billion, total loans to $2.1 billion, and total assets to $2.8 billion based on March 31, 2022 data.
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.”
Eller continued: “F&M has created a successful acquisition platform and Peoples represents F&M’s fifth acquisition since year-end 2018, including four community banking organizations and one complementary financial services company.”
The transaction is subject to shareholder and regulatory approval.