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Farmers announces second acquisition this year
CANFIELD
Farmers National Bank of Canfield continues to gain momentum after the announcement of its second acquisition this year.
Farmers National Banc Corp., the bank’s holding company, will acquire Tri-State First Banc Inc., the holding company for 1st National Community Bank.
The $14.2 million transaction will give Farmers about $1.8 billion in assets, more than 450 employees and 38 offices in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina and Cuyahoga counties in Ohio and Beaver County in Pennsylvania.
Farmers President and Chief Executive Officer Kevin J. Helmick said the bank is interested in further expanding in the northwest Pennsylvania market. “Certainly we’ll look to grow in that market a little more,” he said.
The acquisition also increases Farmers’ deposit market share by 65 percent in Columbiana County with 1st National locations in East Liverpool, Calcutta and Lisbon joining Farmers.
As of March 31, Tri-State had total assets of $139.5 million, which included gross loans of $67 million and deposits of $122.9 million and a low-cost deposit base with more than $54 million in noninterest-bearing deposits.
“By combining with Farmers, we are able to deliver value to our shareholders and partner with a company that embodies the community bank culture,” Stephen R. Sant, president and CEO of Tri-State, said in a statement. Sant will join Farmers as community president, Helmick said.
Each shareholder of Tri-State will be able to receive either $14.20 per share in cash or 1.747 of Farmers’ common shares, subject to an overall limit of 75 percent of the shares being exchanged for Farmers shares and 25 percent for cash. The acquisition is expected to qualify as a tax-free reorganization for shareholders electing to receive Farmers’ shares.
Farmers expects the transaction to close in the fourth quarter of 2015. Technical conversions and sign exchanges will happen in the first quarter of 2016, Helmick said.
On Friday, the bank completed its merger with National Bancshares Corp., the holding company of First National Bank of Orrville. Helmick said all three banks have very similar cultures and philosophies.