Ottumwa, Iowa-based South Ottumwa Savings Bank applied to acquire Albia, Iowa-based Peoples State Bank.
Financial terms of the deal were not publicly disclosed in the application with the Federal Deposit Insurance Corp.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Sept. 16, 2018, and Sept. 16, 2019, averaged 155.54% of book and 159.76% of tangible book and had a median of 16.73x last-12-months earnings, on an aggregate basis.
Cornerstone Financial Services Group Inc., the parent of South Ottumwa Savings Bank, will expand in Wapello County, Iowa, with one branch to be ranked first with a 59.77% share of approximately $431.69 million in total market deposits. The deal will also enable the company to enter Monroe County, Iowa, with one branch to be ranked second with a 39.20% share of approximately $181.20 million in total market deposits.
As of June 30, South Ottumwa Savings Bank had total assets of $405.8 million, while Peoples State Bank had total assets of $119.2 million, according to S&P Global Market Intelligence data.
Peoples State Bank is a subsidiary of Peoples Tri-County BanCorp.
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