The merger of FNCB Bancorp, Inc. into Peoples Financial Services Corp. was completed on July 1, 2024. This transaction was valued at approximately $133.7 million. The primary reasons for the merger included the expansion of the branch network and market share positions in northeastern Pennsylvania.
FNCB contributed approximately $1.8 billion in assets, $421.9 million in investments, $1.2 billion in loans, and $1.4 billion in deposits to Peoples Financial Services. The merger also brought an attractive low-cost funding base and strong cultural alignment, which were key drivers for the transaction.
The integration of FNCB is expected to create meaningful value for shareholders, increase trading liquidity for both companies, and lead to increased dividends for Peoples shareholders. The excess of merger consideration over the fair value of net assets acquired resulted in $13.6 million of goodwill.
Subsequent to the merger, through September 30, 2024, the Company sold $271.2 million par value of available-for-sale securities acquired for net proceeds of $241.2 million. These proceeds were used to repay $189.0 million of short-term overnight FHLB advances, demonstrating active balance sheet management post-merger.
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