Peoples Bancorp and Citizens National Corporation announced a definitive merger agreement under which Peoples will acquire Citizens in a cash and stock transaction valued at approximately $76.6 million.
Under the terms of the agreement, Citizens will merge into Peoples, and its subsidiary, Citizens Bank of Kentucky, Inc., will subsequently merge into Peoples Bank. Citizens operates 12 branches across Eastern Kentucky and, as of March 31, 2026, reported approximately $686 million in total assets, including $342 million in gross loans and $586 million in deposits.
The transaction structure provides Citizens shareholders with 2.10 shares of Peoples common stock plus $8.00 in cash for each share held. Based on Peoples’ recent share price, the implied valuation equates to approximately $78.39 per share. The deal is expected to be immediately accretive to Peoples’ earnings, with a tangible book value earnback period of less than one year and an internal rate of return exceeding 20%.
The acquisition supports Peoples’ strategy to expand its presence in Kentucky while maintaining financial flexibility, including staying below the $10 billion asset threshold. The combined organization aims to enhance product offerings, branch coverage, and community engagement across the region.
The merger has been unanimously approved by both companies’ boards of directors and is expected to close in the second half of 2026, subject to regulatory approvals and shareholder consent.
KEY QUOTES
“We are pleased to expand our footprint in Kentucky through the acquisition of an exceptional franchise in Citizens Bank of Kentucky. Their locations are within areas that mean a lot to us. Citizens’ low-cost deposits and high level of balance sheet liquidity allow us to not only strengthen the Peoples’ deposit base but to also maintain the flexibility to remain under $10 billion in assets. We look forward to growing in Eastern Kentucky, working alongside Citizens’ employees, customers, and communities. Soon we will be able to offer more locations, products, and services to both Citizens and Peoples customers, making a greater impact in our Eastern Kentucky communities.”
Tyler Wilcox, President And Chief Executive Officer, Peoples Bancorp Inc.
“We are looking forward to joining an outstanding organization that will continue our strong culture and believe this partnership will deliver meaningful value to our shareholders as well as to our customers and the communities we serve. Peoples has built a strong reputation in community banking and their experience in successful acquisition integrations will help deliver their relationship and community-driven culture to all of the Citizens stakeholders.”
Leisha Maynard, President And Chief Executive Officer, Citizens National Corporation
