SHIPPENSBURG, Pa. — Orrstown Financial Services Inc. has signed a $32.4 million merger agreement with Mercersburg Financial Corp., the parent company of First Community Bank of Mercersburg.
Under terms of the agreement, Mercersburg shareholders may elect to receive either 1.5291 Orrstown shares or $40 in cash for each Mercersburg share subject to terms, according to a Mercersburg bank news release.
Upon completion of the transaction, the combined bank is expected to have about $2 billion in assets, $1.3 billion in loans and $1.6 billion in deposits, the release said.
The transaction is expected to close in the fourth quarter of 2018, with Robert J. Fignar, president and CEO of Mercersburg Financial Corp., joining Orrstown Financial Services as market president for three counties, the release said.
— By Jennifer Fitch