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Exhibit 99.1
PRESS RELEASE
Source: Frank L. Paden, President & CEO Mr. C. James Bess
Farmers National Banc Corp. Interim President & CEO
20 S. Broad St. Security Dollar Bank
Canfield, OH 44406 One S. Main Street
330-533-3341 Niles, OH 44446
e-mail: fpaden@fnbcanfield.com 330-544-7400
May 30, 2000
For Immediate Release:
Farmers National Bank and Security Dollar Bank Sign
Definitive Agreement to Merge
Frank L. Paden, President of Farmers National Banc Corp., Canfield, OH and
Christopher J. Shaker, Chairman of the Board of Security Financial Corp., Niles,
OH., jointly announce that they have entered into a definitive agreement to
merge the two companies.
Farmers National Banc Corp., the parent company for Farmers National Bank, is an
independent locally owned community bank with $437 million in assets at March
31, 2000 and currently has eleven branches located within Mahoning and
Columbiana Counties. Security is the parent company of Security Dollar Bank that
had $171 million in assets at March 31, 2000 with six offices, all located in
Trumbull County.
The transaction will result in Security Dollar Bank merging into Farmers
National Bank, creating a financial services company with over $605 million in
assets, $480 million in total deposits, $433 million in loans with 17 offices
located in the northeastern Ohio counties of Mahoning, Trumbull and Columbiana.
Combined employment will be approximately 300 people.
Bank customers will have more locations throughout the tri-county area to do
their banking. Since there is no overlap in the market area of the two
corporations, no bank branches will be closed as a result of this merger.
The transaction is subject to approval by various regulatory authorities, the
Securities and Exchange Commission and the shareholders of both companies. It is
expected to close in the fourth quarter of 2000. The agreement provides for a
tax-free exchange of Farmers common stock for shares of Security common stock.
The merger will be accounted for as a "pooling of interests" with a value of
about $32.6 million.
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Farmers' President & CEO Paden commented, "This combination of two successful
locally owned community banks provides opportunities to take advantage of each
of our many strengths, resulting in new and improved products and services for
our customers, greater opportunities for our employees and fits well with our
strategic goals of growth and expansion into new markets, as well as adding to
enhance our shareholders value."
Security Chairman Christopher J. Shaker noted that the affiliation would
expedite enhanced customers offerings such as telephone and Internet On-line
banking, which were recently announced by Farmers. He added: "This transaction
provides benefits to all of our shareholders, and achieves them much more
quickly and efficiently than we could have on our own. The board of Security is
pleased that in Farmers, we have a partner who will continue to give our local
customers the assurance that decisions about their interests will continue to be
made locally."
Both Paden and Shaker emphasized their strong commitment to their communities
and customers along with the continuation and improvement of their personal
service philosophy.
Farmers and Security are both long-standing members of the Valley's banking
community. Farmers National Bank was established in 1887 and Security Dollar
Bank was started in 1904.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Act of 1995 that involve risk and uncertainty.
Forward-looking statements by the company are based upon the reasonable beliefs,
plans, objectives and estimates and intentions of management and are not
guaranties of future performance. It should be noted that a variety of factors,
including those set forth in the companies' filings with the Securities and
Exchange Commission, could cause the company's actual results to differ
materially from the expectations expressed in the forward-looking statements.