New Zealand markets closed
  • NZX 50

    11,736.21
    +33.40 (+0.29%)
     
  • NZD/USD

    0.6281
    -0.0007 (-0.11%)
     
  • NZD/EUR

    0.6158
    -0.0005 (-0.09%)
     
  • ALL ORDS

    7,272.40
    +12.90 (+0.18%)
     
  • ASX 200

    7,023.70
    +3.10 (+0.04%)
     
  • OIL

    90.54
    -0.22 (-0.24%)
     
  • GOLD

    1,786.40
    -0.40 (-0.02%)
     
  • NASDAQ

    13,159.16
    -48.53 (-0.37%)
     
  • FTSE

    7,482.37
    +42.63 (+0.57%)
     
  • Dow Jones

    32,832.54
    +29.07 (+0.09%)
     
  • DAX

    13,687.69
    +113.76 (+0.84%)
     
  • Hang Seng

    20,194.77
    +149.00 (+0.74%)
     
  • NIKKEI 225

    27,985.94
    -263.30 (-0.93%)
     
  • NZD/JPY

    84.7200
    -0.1140 (-0.13%)
     

Farmers & Merchants (FMAO) to Buy Peoples-Sidney for $27 Million

·4-min read

Farmers & Merchants Bancorp, Inc. FMAO has entered an agreement to acquire Peoples-Sidney Financial Corporation and its wholly-owned subsidiary, Peoples Federal Savings and Loan Association. The stock-cum-cash deal is valued at $27 million.

Based in Sidney, OH, Peoples has two full-service branch offices in Anna and Jackson Center, with a drive-through facility in Sidney. As of Mar 31, 2022, Peoples had $132.7 million in total assets, $99.9 million in loans, $114.8 million in deposits and $15.4 million in tangible common equity.

Following the deal closure, Farmers & Merchants Bancorp will have total deposits of $2.4 billion, total loans of $2.1 billion, and total assets of $2.8 billion on a pro-forma basis as of Mar 31, 2022.

Per the deal, shareholders of Peoples will elect to receive either 0.6597 shares of FMAO stock or $24 per share in cash for each of their shares owned, subject to a minimum of 65% of all Peoples shares being exchanged for the FMAO stock. As of Mar 31, 2022, Peoples reported 1,167,025 shares of common stock outstanding.

Excluding one-time transaction costs, the acquisition is expected to be accretive to FMAO’s estimated 2023 and 2024 diluted earnings per share by 2.5% and 3.9%, respectively. At closing, the tangible book value per share is expected to be diluted by 2.1%, which will likely be recovered in 3.25 years using the crossover method.

Lars Eller, the president and CEO of Farmers & Merchants Bancorp, stated, “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.”

He added, “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. F&M’s acquisition strategy, combined with a history of strong organic growth, have contributed to a 33% compound annual growth rate for total assets on a pro forma basis since year-end 2018.”

The president and CEO of Peoples, Debra A. Geuy, stated, “We are very excited to be joining forces with F&M. The two organizations have 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.”

Over the past year, shares of Farmers & Merchants Bancorp have gained 53.7% against a decline of 13.3% recorded by the industry.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Currently, FMAO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Growth Moves by Other Firms

With a view to help clients build long-term financial wellness, Truist Financial Corporation TFC acquired the award-winning gamified finance mobile app, Long Game. Long Game changes the way people engage with their banks. The mobile finance app uses prize-linked savings and casual gaming to motivate smart financial behavior.

Truist Financial is expected to use Long Game’s innovative technology to inspire and build better lives and communities.

Franklin Resources, Inc. BEN, which operates as Franklin Templeton, entered an agreement with The Bank of New York Mellon Corporation BK to acquire BNY Alcentra Group Holdings, Inc. from the latter. The closing of the deal, subject to customary conditions, including certain regulatory approvals, is expected early in the first quarter of 2023.

Through the acquisition, Franklin Templeton’s U.S. alternative credit specialist investment manager, Benefit Street Partners, will be able to expand its alternative credit capabilities and presence in Europe, doubling its AUM to $77 billion globally.

Upon the deal closure, BNY Mellon Investment Management is expected to continue to offer Alcentra’s capabilities in BNY Mellon’s sub-advised funds and select regions via its global distribution platform, and will provide Alcentra with ongoing asset servicing support.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting