CB Financial Services (CBFV) in Carmichaels, Pa., has agreed to buy FedFirst Financial (FFCO) in Monessen, Pa.
The companies said in a press release Monday that the $541 million-asset CB Financial will pay about $55 million in cash and stock for the $319 million-asset FedFirst. About 65% of the consideration will involve stock.
"We can take the best of each bank and find new and better ways to serve our customers," Barron McCune Jr., CB Financial's president and chief executive, said in the release. "We will strive to create the premier community bank in southwestern Pennsylvania."
Three FedFirst directors will join CB Financial's board.
FedFirst also owns an 80% stake in Exchange Underwriters, an insurance agency in Cannonsburg, Pa. FedFirst said it would buy the remaining 20% stake from Robert Boyer, the agency's president and chief operating officer, before selling to CB Financial. Boyer will retain his titles at Exchange Underwriters after the merger is completed.
The companies said they expect to complete the transaction by early fourth quarter.
Keefe, Bruyette & Woods and Luse Gorman Pomerenk & Schick advised CB Financial. Mufson Howe Hunter and Kilpatrick Townsend & Stockton advised FedFirst.