Farmers National Banc Corp. in Canfield, Ohio, has agreed to buy Emclaire Financial in Emlenton, Pa.
The $4.1 billion-asset Farmers said in a press release Thursday that it will pay $105 million in cash and stock for the $1.1 billion-asset Emclaire. The deal, which is expected to close in the second half of this year, priced Emclaire at 144.7% of its tangible book value.
William Marsh, Emclaire’s chairman, president and CEO, will join Farmers as Pennsylvania market president. One Emclaire director will join Farmers’ board.
“This latest transaction will mark a significant extension into the Pennsylvania markets, which has been a long-time strategy for Farmers,” Kevin Helmick, Farmers’ president and CEO, said in the release.
Emclaire has $790.9 million of loans and $918.5 million of deposits.
The deal is expected to by 10% accretive to Farmers’ earnings per share. It should take about three years for Farmers to earn back any dilution to its tangible book value.
Farmers plans to cut about 34% of Emclaire’s annual noninterest expenses. The company expects to incur $13.2 million of merger-related expenses.
Janney Montgomery Scott and Vorys, Sater, Seymour and Pease advised Farmers. Raymond James and Silver, Freedman, Taff & Tiernan advised Emclaire.