Farmers receives regulatory approvals for bank merger
Cortland Bancorp to be absorbed in fourth quarter if shareholders give OK
YOUNGSTOWN — Canfield-based Farmers National Banc Corp., the holding company for Farmers National Bank, has received the regulatory approvals it needs to complete its acquisition of Cortland Bancorp.
The Federal Reserve Bank of Cleveland and the Office of Comptroller of the Currency have green-lit the merger with Cortland, the holding company of Cortland Savings and Banking Company, Farmers announced Monday.
The merger is expected to be completed in the fourth quarter of this year, subject to customary closing conditions and approval by shareholders of Cortland, who plan to meet Oct. 26 to vote on the merger.
Cortland’s board of directors already have approved the merger.
Farmers and Cortland announced the $124 million transaction June 23. Under the agreement, each Cortland Bank shareholder may elect to receive either $28 per share in cash or 1.75 shares of Farmers’ common stock, subject to an overall limitation of 75 percent of the shares being exchanged for Farmers shares and 25 percent for cash.
After the transaction closes, Farmers will integrate Cortland Bank’s operating system into its own sometime in the first quarter of 2022 and then start to rebrand Cortland Bank’s branches and other offices under the Farmers name.
Also, James M. Gasior, Cortland Bancorp Inc.’s president and CEO, will join the Farmers executive team as senior executive vice president and corporate development officer.
Timothy Carney, Cortland’s executive vice president and chief operating officer, will join Farmers as senior executive vice president and chief banking officer. Farmers intends to name two directors from Cortland’s board to join its board of directors.
The merger expands Farmers’ reach into suburban Cleveland, where Cortland Bank has branches, and into the Akron area, where Cortland Bank has a financial service center in Fairlawn.