Farmers National Banc Corp. in Canfield, Ohio, struck a deal that would expand its asset base by a nearly fourth and bolster its market share in Greater Cleveland.
The $124 million acquisition of Cortland Bank in Cortland, Ohio, would also deepen the $3.3 billion-asset Farmers’ leadership bench, Farmers National said.
At the end of the first quarter, Cortland Bank had assets of $792 million, loans of $519 million and deposits of $680 million. It has 13 branches across the northeast Ohio counties of Trumbull, Mahoning, Portage, Summit and Cuyahoga, which includes Cleveland.
The combined bank would have more than $4.1 billion of assets and 48 branches. The deal is expected to close in the fourth quarter.
Cortland President and CEO James Gasior will join Farmers as senior executive vice president and corporate development officer. The bank’s chief operating officer, Timothy Carney, will join Farmers as chief banking officer.
“We are thrilled to announce the acquisition of Cortland and to have Jim and Tim join our executive management team,” Kevin Helmick, Farmers Bank's president and CEO, said in a press release Wednesday. “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.”
This would be the fifth and largest bank acquisition for Farmers since 2015. It most recently acquired Maple Leaf Financial in Newbury, Ohio, in early 2020 for about $42 million.
Under the cash-and-stock deal, Cortland shareholders can choose to receive either $28.00 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 Farmers shares and 25% for cash.
