Premier Bank, Inc. plans to buy the Bank of Gassaway for $20.3 million as part of a deal to expand the bank's footprint along the Interstate 79 corridor.
Premier Financial Bancorp Inc., parent company of Premier Bank, announced details of the deal Tuesday.
Under terms of the agreement, Premier, will pay $20.3 million in cash for the Bank of Gassaway and merge its five branches - located in Gassaway, Sutton, Flatwoods, Clay and Burnsville - into Premier's operating system.
The transaction, which is still subject to regulatory approval, is expected to close early in the second quarter of 2014.
Premier Financial is currently a $1.1 billion bank holding company. Company officials say the purchase of the Bank of Gassaway, which has $165 million in assets, will be immediately accretive to earnings once it's complete.
Robert Walker, Premier's president and CEO, said the Bank of Gassaway was a "natural fit" in terms of both geography and operations.
"I have had several discussions with their senior management team and they do business the way we like to do business, on a personal level," Walker said.
Bank of Gassaway CEO JoAnn Truman said bank officials were excited about the merger and it will benefit the bank's existing customers.
"We believe Premier is a vibrant and growing community bank franchise," Truman said. "Their management team has a history of operating banks that are strong, healthy performers within their local communities with an inviting, friendly community bank atmosphere."