NexTier, Farmers & Merchants to merge, with $1B combined assets, by 1stQ 2014
NexTier Bank of Butler and Farmers & Merchants Bank in Kittanning said on Tuesday that they plan to combine into a 24-branch bank with $1 billion in assets — NexTier's second attempt to merge in less than three years.
The bank would retain the NexTier name and be headquartered in Butler. The privately owned banks did not disclose the value of the deal.
With about $512 million in assets, NexTier operates 15 branches in Butler, Allegheny and Armstrong counties. Farmers & Merchants, which has $425 million in assets, operates nine branches in Armstrong County.
“There are clear, strategic benefits to combining the two highly complementary organizations, including growth opportunities,” said a statement from Mark Snyder, chairman of NexTier Inc. and a member of the F&M board.
NexTier agreed to merge with Northwest Bancshares, Warren, in late 2010. But just weeks before the $20.3 million deal was to close, Northwest canceled the deal after regulators ordered it to pay fines and depositor refunds up to $700,000 over allegations that it underpaid interest on accounts.
The deal on Tuesday marks the latest chapter in the 135-year history of the bank. Founded in 1878 as Citizens National Bank, the institution changed its name to NexTier in 2005, following a legal battle with Citizens Bank over the name when the Rhode Island-based bank entered Western Pennsylvania in late 2001 by acquiring Mellon Bank's branches.
Farmers & Merchants' owner, the Snyder Group, owns about 81 percent of NexTier. The business investment group based in Kittanning acquired a controlling 51 percent stake in NexTier in 2011.
“This combination allows our organizations to not only stay viable, but to flourish,” despite challenges from low interest rates and added regulations, Snyder said.
The two banks plan to retain all 15 branches of NexTier and all nine of Farmers & Merchants, as well as all 260 workers employed at the two banks combined.
“We don't expect to have any employees of any sort laid off,” said Maria Smathers, spokeswoman for NexTier, which employs 160 people.
Subject to regulatory approvals, the merger is expected to be completed in the first-quarter of 2014.
Thomas Olson is a Trib Total Media staff writer. He can be reached at 412-320-7854 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- ‘Word people’ could start careers as court reporters, medical scribes
- Small stores take big gamble by not upgrading credit card readers
- Stop neighbors from stealing your Internet
- Yahoo investors losing patience with ‘star’ CEO Marissa Mayer
- Amazon raises bar for other retailers with same-day delivery
- Shopping beacons join list of ‘next big thing’ disappointments
- Many Black Friday deals not worth the hassle
- Nutritional supplement makers, led by GNC, want to create voluntary safety standards
- Covestro leader MacCleary finds stability amid change
- VW adds 75,000 vehicles to emissions cheat scandal
- Pfizer acquires Allergan in $160B deal