First Federal Financial Services Corp. of Wooster, Ohio, said Monday it would buy First Shenango Bancorp for $103.9 million of stock.
The agreement calls for New Castle, Pa.-based First Shenango's banking subsidiary, First Federal Savings Bank, to become a separate subsidiary of First Federal Financial. That means the $375 million-asset thrift would keep its name and charter.
Gary G. Clark, chairman and chief executive officer of $1.4 billion- asset First Federal Financial, called the merger "a logical and attractive opportunity" for his company.
"First Shenango is a great community savings bank with a strong reputation for customer service," Mr. Clark said. "It is a natural extension to our existing franchise in Ohio."
The deal, expected to close during the third quarter, would give First Federal its first presence in Pennsylvania. The company owns two Ohio banks, Signal Bank and Summit Bank.