Farmers to Merge with Merchants in Pennsylvania

Two small Pittsburgh-area banking companies have announced plans to merge.

Merchants Bancorp of Pennsylvania Inc., the parent of the $157 million-asset Merchants National Bank of Kittanning, and F&A Financial Corporation, the parent of the $174 million-asset Farmers National Bank of Kittanning, did not disclose the deal price.

The two companies are billing the transaction as a "merger of equals," although Merchants Bancorp is officially the buyer and would be the surviving holding company, Richard Krauland, the president and chief executive officer of Farmers National Bank, said in an interview Tuesday.

After the deal closes, the bank would be renamed Farmers & Merchants Bank of Western Pennsylvania and have seven branches in Armstrong County. An eighth one is being built.

Mr. Krauland said he would become the president and CEO of Merchants Bancorp and Farmers & Merchants Bank.

The deal is expected to close in the first quarter of 2008.

For reprint and licensing requests for this article, click here.
Community banking
MORE FROM AMERICAN BANKER