S&T Bancorp completes acquisition of peoples financial for 3.48 times revenue

Weekly Corporate Growth Report, Sep 16, 2002

The Deal: S&T Bancorp Inc. and Peoples Financial Corp. have announced September 9th that they have completed the merger of Peoples Financial into S&T. Under the terms of the agreement, the shareholders will receive $52.50 in cash for each share of Peoples Financial, for a total transaction value of approximately $87.4 million. The combined company will operate as S&T Bank.

Discussion: Peoples Financial Corp. Inc. is the holding company for PFC Bank. The bank offers a full range of banking services through seven banking offices in Pennsylvania.

S&T Bancorp is the bank holding company for S&T Bank. The bank operates nearly 50 branch offices in Pittsburgh and in about a half-dozen counties north and east of the city. The bank offers a range of standard consumer accounts, and also offers services such as discount brokerage, personal financial planning, and credit cards. S&T Bancorp also operates two subsidiaries in the insurance industry.

The combined company has approximately $2.8 billion in total assets and about $1.9 billion in deposits. The acquisition of Peoples Financial adds seven branch offices to S&T, bringing it to a total of 47 offices throughout eight counties.