The proposed $85.6 million acquisition of Cincinnati-based Peoples Community Bancorp Inc. by Integra Bank Corp. of Evansville has been terminated, the banks announced late yesterday. The parties agreed not to discuss the matter beyond saying that ending "the proposed transaction was in the best interests of each of their respective corporations and shareholders."
However, officials of both banks added in the statement that the condition of the economy played a role.
"It is unfortunate that the ongoing crisis in the housing market has worsened so quickly, created so much uncertainty and fundamentally changed the attitudes of the stock market, industry experts and regulators toward mergers," Integra Chairman, President and CEO Mike Vea said in a statement. "We continue to regard Peoples' market, operations and management team very favorably."
Peoples CEO Jerry Williams said, "In this environment, we agree that it is the best course of action for Peoples to move forward as an independent community bank."
When the cash and stock deal was announced in September, the combined bank would have had $4.2 billion in assets, $3.2 billion in deposits and $2.9 billion in loans.
Integra has 80 banking centers in Indiana, Kentucky, Illinois and Ohio; none are in the Indianapolis area, according to its Web site. Peoples Community Bank has 19 locations in southwestern Ohio and southeastern Indiana.