Two of the Valley’s most iconic names in banking, and longtime competitors, are now joining forces in a $124 million merger deal.

The parent companies of Farmers National Bank of Canfield and Cortland Savings and Bank on Wednesday announced the merger plans which are expected to be completed near the end of this year.

Once completed, Cortland’s branches will become branches of Farmers National Bank resulting in 49 locations in Ohio and Western Pennsylvania with $4.1 billion in assets.

Under the agreement, each shareholder of Cortland may receive either $28.00 per share in cash or 1.75 shares of Farmers’ common stock. The offering is subject to an overall limitation of 75% of the shares being exchanged for Farmers' shares and 25% for cash. Based on Farmers’ closing share price of $16.87 on June 22, 2021, the transaction is valued at approximately $124.0 million or $29.14 per share.

The merger is expected to qualify as a tax-free reorganization for those shareholders electing to receive Farmers’ shares. The deal, which is subject to Cortland shareholder and regulatory approval.

At the close of the transaction, James M. Gasior, Cortland’s President, and CEO will join Farmer's executive team as Senior Executive Vice President and Corporate Development Officer. 

Timothy Carney, Cortland’s Executive Vice President and COO will join Farmers as Senior Executive Vice President and Chief Banking Officer.

Farmers also intends to name two directors from Cortland’s Board to join its Board of Directors.

“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,” said Kevin J. Helmick, president and CEO of Farmers,.

As of March 31, 2021, Cortland had total assets of $791.7 million, which included gross loans of $518.6 million, deposits of $680.3 million, and equity of $81.1 million.