Investment Banking - Peoples Financial Services Corp.
Transactions | Banking
Client: Peoples Financial Services Corp.
Transaction Type: Mergers & Acquisitions
Role: Financial Advisor
- Peoples Financial Services Corp. (OTCQB:PFIS) (“Peoples”) is a $715 million bank holding company for Peoples Neighborhood Bank. Peoples is headquartered in Hallstead, Pennsylvania and as of June 30, 2013 had 13 branches and $597 million in deposits.
- Penseco Financial Services Corporation (OTCQB:PFNS) (“Penseco”) is a $918 million bank holding company for Penn Security Bank and Trust Company. Penseco is headquartered in Scranton, Pennsylvania and as of June 30, 2013 had 13 branches and $730 million of deposits.
- The merger of equals combination will create a $1.6 billion company with twenty five office locations with office headquarters in Scranton, Pennsylvania and with significant operations headquartered in Hallstead, Pennsylvania. The two institutions will combine under the new name “Peoples Security Bank & Trust Company.”
- As part of the transaction, Peoples issued 1.3636 shares of Peoples common stock in exchange for each outstanding share of Penseco common stock. Peoples continues as the holding company for the renamed Peoples Security Bank & Trust Company. Upon closing, Peoples Security Bank & Trust Company had a 14-member Board of Directors comprised of six members designated by Peoples and eight members designated by Penseco. Lastly, legacy Penseco shareholders control 59% of the combined company while legacy Peoples shareholders control 41% of the combined company.
- Boenning & Scattergood served as financial advisor to Peoples and provided a fairness opinion to its Board of Directors.