Cortland Bank Shareholders to Vote on Merger with Farmers Oct. 26
CORTLAND, Ohio – The shareholders of Cortland Bank will vote on the institution’s merger with Farmers National Bank at a meeting Oct. 26.
The board of directors for Cortland Bancorp – the bank’s parent company – has already unanimously approved the merger, according to a filing with the Securities and Exchange Commission.
The Cortland Bank shareholders meeting will be held at 11 a.m. at Squaw Creek Country Club.
Under terms of the merger agreement, Cortland Bancorp shareholders will receive a combination of cash and Farmers National Banc Corp. shares. Each share of Cortland Bank will converted to the right to receive either 1.75 common shares in Farmers or $28 in cash. At least 75% of outstanding Cortland shares must be converted to Farmers shares.
On June 22, the two banks announced their merger agreement, which is expected to close by the end of the year. The combined entity will have $4.1 billion in assets and 48 locations. Cortland Bank President and CEO James Gasior will join Farmers as senior executive vice president and corporate development officer upon the deal’s closing.
“They’re in our backyard and we share markets and customers. With that, we share the same values with a customer-centric philosophy and very similar risk management philosophies,” said Farmers President and CEO Kevin Helmick shortly after the announcement. “We take an approach to lending that surrounds small businesses. They’re so important to our economy, to our region and to our local communities. When we look at a partner like Cortland, they very much feel the same way.”
The merger, which will see all Cortland Bank branches rebranded, will give Farmers a presence in Portage and Summit counties, as well as the Cleveland suburbs.
“We feel they provide good growth opportunities. As a larger bank than Cortland, we have things like Farmers Trust Co., Farmers Investment Group and our insurance company,” Helmick said in June. “We’ll be able to leverage those and take them to communities like Hudson, Fairlawn and Strongsville.”
Copyright 2021 The Business Journal, Youngstown, Ohio.