Farmers National Banc Corp. in Canfield, Ohio, has agreed to buy Middlefield Banc Corp. in Middlefield, Ohio.
The $5.4 billion-asset Farmers said in a press release that it will pay $299 million in stock for the $2 billion-asset Middlefield. The deal, which is expected to close in the first quarter, priced Middlefield at 163.5% of its tangible book value.
Two Middlefield directors will join Farmers’ board.
The acquisition “brings together two high-performing community banks with complementary markets, shared values, and a common vision for growth,” Kevin Helmick, Farmers’ president and CEO, said in the release. “We know Middlefield and its markets well, and this partnership not only deepens our presence in northeast Ohio but meaningfully expands our footprint across central and western Ohio markets.”
Middlefield has $1.6 billion of loans and $1.6 billion of deposits.
The deal should be 7% accretive to Farmers’ 2027 earnings per share. It should take about three years to earn back an estimated 4.4% dilution to Farmers’ tangible book value.
Farmers plans to cut 38% of Middlefield’s annual operating expenses. The company expects to incur $21.8 million in merger-related expenses..
Janney Montgomery Scott and Vorys, Sater, Seymour and Pease advised Farmers. Raymond James and Nelson Mullins Riley & Scarborough advised Middlefield.