Diversified financial services company Farmers National Banc (FMNB) has signed an agreement to acquire Cortland Bancorp, the holding company of The Cortland Savings and Banking Company. The transaction is likely to close in the fourth quarter of 2021.
Following the news release, shares of the company plummeted 5.2% in Wednesday’s trading session. However, they recovered modestly and closed at $16.10 in the extended trading session.
As per the terms of the agreement, each shareholder of Cortland can opt to receive either $28 per share in cash or 1.75 shares of Farmers National’s common share subject to a limitation of 75% of shares being exchanged for Farmers National’s shares and 25% for cash. Notably, as per the closing share price of $16.87 on June 22, the deal is valued at approximately $124 million.
CEO of Farmers National Banc Kevin J. Helmick said, “We are thrilled to announce the acquisition of Cortland and to have Jim and Tim join our executive management team. 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.” (See Farmers National stock chart on TipRanks)
Recently, Raymond James analyst Daniel Tamayo reiterated a Buy rating on the stock with a price target of $19 (18.8% upside potential).
The stock has a Moderate Buy consensus rating based on 1 Buy. Shares have gained 40.3% over the past year.
Farmers National scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the market averages.
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