Farmers National Bank to Acquire Cortland Bank
CANFIELD, Ohio – Farmers National Bank and Cortland Bank have entered into a merger agreement, a deal that’s expected to close in the fourth quarter.
The combined entity will have about $4.1 billion in assets and 48 locations. All Cortland Bank branches will become Farmers National Bank sites.
At the close of the transaction, Cortland Bank President and CEO James Gasior will join Farmers as senior executive vice president and corporate development officer.
In addition, Cortland Bank chief operating officer Timothy Carney will join Farmers as chief banking officer. Farmers will also name two members of Cortland’s board of directors to its own board.
“We are thrilled to announce the acquisition of Cortland and to have Jim and Tim join our executive management team,” said Farmers Bank President and CEO Kevin Helmick in a prepared statement. “We have known and competed with Cortland for a long time and this acquisition will further solidify our market share in Trumbull and Mahoning Counties as well as expand our presence in the greater Cleveland area furthering our strategy of building local scale throughout northeast Ohio.”
Added Gasior: “The combination with Farmers is a natural one. Our similar cultures and operating philosophies will help us deliver value and liquidity to our shareholders while enhancing the products we can offer our customers.”
Cortland Bank shareholders can elect to receive either $28 per share in cash or 1.75 shares of Farmers common stock. Based on Farmers’ closing share price of $16.87 on June 22, the transaction is valued at about $124 million.
At the end of the first quarter, Cortland Bank had assets of $791.7 million, including gross loans of $518.6 million, deposits of $680.3 million and equity of $81.1 million.
Farmers National Bank is hosting a conference call at 11 a.m. Wednesday to discuss the merger. On Monday, the bank announced the retirement of chief financial officer Carl Culp, as well as the promotion of Troy Adair to executive vice president of finance and Joseph Sabat to vice president and chief accounting officer.
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