First Chester County Corp. in West Chester, Pa., said Friday that it has agreed to buy American Home Bank in Mountville for $18.2 million in cash and stock.
Acquiring the $268 million-asset American Home would bring the $973 million-asset First Chester into two new Pennsylvania counties: Cumberland and Lancaster.
First Chester, the parent of First National Bank of Chester County, also would gain three branches, bringing its total to 25.
American Home would retain its name and would operate as a division of First National Bank. James M. Deitch, American Home's chairman and chief executive officer, would become the managing director of the division.
He also would join the boards of First Chester and First National Bank.
The deal is expected to close this year.
