Ohio community bank strikes deal to expand in Columbus

Core Insights - Farmers National Banc Corp. has agreed to acquire Middlefield Banc Corp. for $299 million in stock, enhancing its presence in the Columbus market [1][9] - The acquisition is expected to close in the first quarter of 2026, with a projected earnings accretion of 7% in 2027 [7][10] Company Growth Strategy - The acquisition will accelerate Farmers' growth in the Columbus area, which has seen a population increase of 4% from 2020 to 2024 and is benefiting from significant economic development [3] - Farmers has previously opened a loan production office in Dublin, Ohio, and acquired Crest Retirement Advisors, indicating a strategic focus on expanding its footprint in the region [1][2] Market Context - The Columbus market is Ohio's largest, with over 2.2 million residents, and is experiencing a boom due to major investments from companies like Intel, Amazon, and Honda [3] - Middlefield Banc Corp. has grown its loan portfolio by 55% since 2021, showcasing its strong performance prior to the acquisition [3][4] M&A Activity - The acquisition of Middlefield is Farmers' largest deal in its 138-year history and the seventh transaction since 2014 [8] - The Midwest banking sector is seeing increased M&A activity, with 140 mergers announced between January 1 and October 20, 2024, compared to 129 for all of 2023 [6][5] Financial Performance - Farmers reported a net income of $45.9 million in 2024 and $28.4 million in the first nine months of 2025, while Middlefield earned $15.5 million in 2024 and $16.3 million in the first nine months of 2025 [11]