YOUNGSTOWN, Ohio – Mergers and consolidations involving local institutions sometimes leave small communities with the short end of the stick.
That certainly isn’t the situation with the merger of Farmers National Banc Corp., holding company for The Farmers National Bank of Canfield, and Cortland Bancorp, holding company for The Cortland Savings and Banking Co.
The merger, which took effect Nov. 1, gives Farmers even deeper roots in the Mahoning Valley as it combines more than 260 years of experience as community banks.
Farmers and Cortland both trace their roots to the end of the 19th century, sprouting in communities that were rural, farming centers – their customers arriving on horseback or by carriage. Today Canfield and Cortland are bustling suburban centers.
The transaction, valued at approximately $124 million, offered Cortland shareholders the option to receive $28 per share in cash or 1.75 shares of Farmers common stock, subject to an overall limitation of 75% of the shares being exchanged for stock and 25% for cash.
The acquisition of Cortland – the sixth financial institution Farmers has acquired in six years – comes as Farmers reports strong third-quarter results: $16 million in net income, up from the $10.9 million for the comparable period in 2020 and up from $15.6 million in the second quarter.
Farmers National Banc Corp. is now a 48-branch system covering Mahoning, Trumbull, Columbiana, Stark, Summit, Portage, Wayne, Medina, Geauga and Cuyahoga counties in Ohio and Beaver County in Pennsylvania.
Clearly, Farmers is well on its way to exceed the record results it set in 2020.
“Cortland expands our presence within compelling Northeast Ohio markets including Summit and Portage counties, while increasing our bank assets to over $4.1 billion and our wealth assets to over $3.0 billion, making us one of the largest community banks in the state of Ohio,” says Kevin J. Helmick, president and CEO of Farmers. “In addition, we look forward to offering our modern and comprehensive financial services to Cortland’s customers and growing our local relationships across Cortland’s footprint.”
Financial institutions such as Huntington National Bank, PNC, Premier and First National Bank have all acquired local banks. And to their credit, they continue to give back to the community through generous foundations and initiatives to support education, nonprofits and economic development.
There are many local financial institutions such as Middlefield Bank and credit unions that continue to expand and give back across the Mahoning and Shenango valleys.
It’s gratifying to see local banks combining to form a stronger institution. We applaud the leaders of Farmers and Cortland and their shareholders for such dedicated foresight.