PAINTSVILLE – Citizens National Corporation (OTCQB: CZNL), the holding company for Citizens National Bank, Paintsville, and Peoples Security Bancorp, Inc., the holding company for The Peoples Security Bank of Louisa, Louisa, announced last week their agreement that Peoples Security be acquired by Citizens for approximately $663.15 per share in a merger involving Peoples Security and a Citizens subsidiary. The cash and note transaction is subject to shareholder and regulatory approval and is expected to close before the end of the first quarter of 2015. The purchase price is subject to adjustment, up or down, based on Peoples Security’s shareholder’s equity at the closing.
Through its subsidiary, Citizens National Bank of Paintsville, Citizens operates 11 offices throughout Boyd, Carter, Floyd, Greenup, Johnson, Magoffin and Pike Counties. At June 30, Citizens had approximately $525 million in assets and $417 million in deposits.
Through its subsidiary, The Peoples Security Bank of Louisa, Peoples Security operates two offices in Lawrence County. At June 30, Peoples Security had approximately $48 million in assets and $41 million in deposits.
In commenting on the transaction, John L. Burton Jr., president and CEO of Peoples Security, said, “We’re very excited about this new partnership with Citizens National Bank. This is an excellent fit for both companies. Peoples Security Bank and Citizens National Bank share a similar commitment to customers, employees and the communities we serve. This merger will preserve our tradition of community banking and local loan decision making.”
“This acquisition will allow us to expand financial services and product offerings to the new and current customers within Lawrence County,” said V. Burton Bellamy, President & CEO of Citizens National Bank. “Additionally, the culture of Peoples Security Bank is similar to our own in that there is strong emphasis on personal service. Customers will expect no less from Citizens National Bank and we are committed to both meeting and exceeding those expectations, as we take banking personally.”
Frost Brown Todd LLC, of Louisville, served as legal counsel to Citizens National Corporation and VanAntwerp, Monge, Jones, Edwards & McCann, LLP, of Ashland, served as legal counsel to Peoples Security Bancorp, Inc.