SCRANTON, PA — Peoples Financial Services Corp. (Peoples) and FNCB Bancorp, Inc. announced they have entered into a definitive agreement under which Peoples and FNCB will combine in an all-stock deal valued at approximately $129 million.

The valuation is based on a 20-day volume-weighted average stock price for Peoples’ common stock of $44.13, resulting in an implied price per share to holders of FNCB common stock of approximately $6.44 per share.

Under the terms of the definitive agreement, which was unanimously approved by the boards of directors of both companies, upon the completion of the merger, the FNCB shareholders would receive 0.1460 shares of Peoples common stock for each share of FNCB common stock they own. The pro forma post-merger shareholder ownership split would be approximately 71 percent for Peoples and 29 percent for FNCB.

The merger will create a bank holding company with nearly $5.5 billion in assets.