A Philadelphia thrift loaded with cash from a mutual conversion last year will use some of it to buy an in-town rival.

PSB Bancorp, parent of Pennsylvania Savings Bank, has a deal to purchase First Bank of Philadelphia for $15.7 million in stock.

Terms of the deal call for First Bank to be merged with Pennsylvania Savings Bank. The combined entity would keep First Bank's commercial charter and do business under a yet-to-be-determined bank name.

First Bank, which has $63 million of assets, operates one office, in downtown Philadelphia.

Pennsylvania Savings operates six branches and has $164 million of assets. The deal is expected to close this year.

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