Thursday, March 24, 2022

Farmers National entering Pittsburgh with Emclaire deal

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.

“The contiguous expansion will also serve as Farmers’ entrance into the attractive Pittsburgh market and allow us to deliver our robust wealth management and mortgage services to the Emlenton footprint,” Helmick added. 

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.

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