Ambanc Holding Co. has signed an agreement to buy Afsala Bancorp in a $30 million tax-free stock swap.

The deal would marry two community banks based in Amsterdam, N.Y.

The combined entity, which would be renamed, would have $670 million of assets, $470 million of deposits, and an 18-branch network.

Ambanc, established in 1886, is the parent company of Amsterdam Savings Bank.

Afsala, founded in 1936, is the parent of Amsterdam Federal Bank.

John Kisicki, chairman and chief executive officer of Afsala, would take the helm of the combined bank after the retirement of Robert J. Brittain, Ambanc's president, when the sale closes, in the fourth quarter.

The deal calls for an exchange of 1.07 shares of Ambanc common stock for each outstanding share of Afsala.

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