Peoples Community Bancorp higher, merges with Integra Bank

Shares of Peoples Community Bancorp, Inc. (Nasdaq: PCBI) are higher following news before the opening bell that the West Chester, Ohio-based savings and loan holding company is being purchased by Integra Bank Corp. (Nasdaq: IBNK) for $85.6 million.

The agreement, which has been approved by both boards, stipulates that each share of Peoples stock be converted into 0.6175 shares of Integra common stock and $6.30 in cash.

The purchase will allow Evansville, Ind.-based Integra, the parent of Integra Bank N.A., to expand its reach by absorbing the 19 offices that Peoples has in the Cincinnati metropolitan area. Integra currently operates 80 full-service banking centers throughout Indiana, Illinois, Kentucky and Ohio.

“We are pleased to have the opportunity to accelerate the expansion of our Greater Cincinnati presence and have Peoples Community Bank become part of our team,” said Integra CEO and president Mike Vea in a press release.

The merger is expected to close in the first quarter of 2008, after which the combined company will have total assets of about $4.2 billion, $3.2 billion in deposits and $2.9 billion in loans, based on financial data as of June 30, 2007.

At 12:09 p.m. ET shares of Peoples had added $0.90, or 6%, to $17, while Integra was down $0.36, or 2%, to $18.09.

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