Farmers National Banc Corp. in Canfield, Ohio, has agreed to buy National Bancshares in Orrville, Ohio.
The $1.1 billion-asset Farmers will pay $74 million, or $32.15 a share, in cash and stock for the $530 million-asset National Bancshares. The transaction is expected to close in the first half of this year.
We are very pleased to announce this transformational merger, Kevin Helmick, Farmers president and chief executive, said in a press release Tuesday. This transaction helps Farmers achieve additional operating scale and drive earnings per share growth as our management team continues to focus on achieving above-average returns for our shareholders.
Farmers said it expects the transaction to be more than 20% accretive to earnings per share during the first full year of operations, excluding one-time merger costs. It should take about four years to earn back the deals tangible book value dilution.
Sterne, Agee & Leach and Vorys, Sater, Seymour & Pease advised Farmers. Boenning & Scattergood and Calfee, Halter & Griswold advised National Bancshares.
