CANFIELD, Ohio -- Farmers National Banc Corp., the holding company for The Farmers National Bank of Canfield, and National Bancshares Corp., the holding company for First National Bank of Orrville, announced today they have entered into an agreement and plan of merger.

Each shareholder of National Bancshares will be entitled to elect to receive either $32.15 per share in cash or 4.034 shares of Farmers’ common stock, subject to an overall limitation of 80% of the shares being exchanged for stock and 20% for cash, the companies said. Based on Farmers’ volume weighted average stock price over the last 20 trading days of $7.97, as of Jan. 26 the transaction is valued at approximately $74.0 million. The merger is expected to qualify as a tax-free reorganization for those shareholders electing to receive Farmers’ stock.  The transaction is subject to receipt of National Bancshares’ shareholder approval, Farmers’ shareholder approval and customary regulatory approvals.

The company expects the transaction to close in the first half of 2015.

National Bancshares Corp.’s subsidiary, First National Bank, is headquartered in Orrville, Ohio with fourteen banking offices in Orrville, Massillon, Wooster, Apple Creek, Dalton, Kidron, Lodi, Mt. Eaton, Salem, Seville and Smithville.

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Published by The Business Journal, Youngstown, Ohio.
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