YOUNGSTOWN – Canfield-based Farmers National Banc Corp., the holding company of Farmers National Bank, has received the necessary regulatory approvals to complete its acquisition of Cortland Bancorp.
The Cleveland Federal Reserve and the Office of the Comptroller of the Currency have given the green light to the merger with Cortland, the holding company of Cortland Savings and Banking Company, Farmers said Monday.
The merger is expected to be finalized in the fourth quarter of this year, subject to customary closing conditions and approval by Cortland shareholders, who plan to meet on October 26 to vote on the merger.
Cortland’s board of directors has already approved the merger.
Farmers and Cortland announced the $ 124 million transaction on June 23. Under the agreement, each Cortland Bank shareholder can elect to receive either $ 28 per share in cash or 1.75 Farmers common share, subject to an aggregate 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 their own during the first quarter of 2022 and then begin to rename the branch and other offices of Cortland Bank as Farmers.
Additionally, James M. Gasior, President and CEO of Cortland Bancorp Inc., will join the Farmers management team as Senior Executive Vice President and Head of Business Development.
Timothy Carney, Executive Vice President and COO of Cortland, will join Farmers as Senior Executive Vice President and Chief Banking Officer. Farmers intends to appoint two directors to Cortland’s board of directors to join its board of directors.
The merger extends the reach of Farmers to the suburb of Cleveland, where Cortland Bank has branches, and to the Akron area, where Cortland Bank has a financial services center in Fairlawn.