Chiefland, Fla.-based Drummond Banking Co. is acquiring Lake City, Fla.-based PSB BancGroup Inc.

The pricing terms of the deal were not disclosed but PSB BancGroup shareholders will receive cash in exchange for their shares.

SNL valuations for bank and thrift targets in the Southeast region between July 23, 2017, and July 23, 2018, averaged 157.92% of book, 166.96% of tangible book and had a median of 27.59x last-12-months earnings, on an aggregate basis.

The deal is expected to close in the first quarter of 2019. PSB BancGroup unit Peoples State Bank would merge into Drummond Community Bank.

Upon closing, the combined company will have more than $600 million in assets, more than $550 million in deposits and more than $340 million in loans. Consolidated capital and reserves will exceed $62 million. As of June 30, Drummond Community Bank had $518.4 million in assets, while Peoples State Bank had $86.9 million in assets.

With the addition of Peoples State Bank, Drummond Community Bank will operate 17 banking offices and two loan production offices.

SNL data shows that Drummond Banking will enter Columbia County, Fla., with two branches to be ranked fifth with a 7.04% share of $1.07 billion in total market deposits.

ProBank Austin served as financial adviser to Drummond Banking Co. with Managing Director Craig Mancinotti serving as lead adviser.

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