Donegal Financial Services Corp. in Marietta, Pa., and Union Financial Corp. of Lancaster, Pa., said they need more time to complete their merger.
Donegal, the parent of the $103.4 million-asset Province Bank FSB, announced plans in April to buy the $466.8 million-asset Union.
The companies on Wednesday extended the deadline for closing the deal to March 31 from Dec. 31. Union shareholders, who approved the merger Sept. 16, are expected to get $5.05 in cash and 0.2134 share of Donegal common stock. The Office of Thrift Supervision has yet to approve the deal.