First Federal of Bucks County & First Savings Bank of Perkasie Join Together

Two of Bucks County’s oldest banks are joining together.

Bristol-based First Federal of Bucks County and First Savings Bank of Perkasie announced Wednesday morning they have “approved an agreement that will pave the way for the two to become one.”

The banks will become the largest “mutual organization” in Bucks County.

The combination of the two banks will give the yet-to-be-titled new banking institution nearly two-dozen branches throughout lower, central and upper Bucks County.

Statements from the banks state they will “extend the banks’ footprint, combine their capital reserves, and allow them to offer a wider array of financial products and services, while reinforcing their commitments to their local communities, customers, and team members.”

Bank officials said in statements the move was not to cut costs.

“This union brings together two local companies that share the same philosophy and commitment to our communities,” said Jeane Coyle, president and CEO of First Federal of Bucks County.

“Being a mutual [organization] means we don’t have to answer to stock holders. We answer only to our customers ,” said Bob Byers, Jr., chairman of the First Savings Bank of Perkasie board of directors.

The banks say they do not expect to close locations or layoff any branch employees. Reductions in overlapping management and support staff are expected to be achieved largely through attrition. Overall, the two banks employ a combined 300 people.

Coyle is expected to lead the combination of the two banks, which have roughly $1.8 billion in assets.

While both banks’ board of directors voted this week to approve the deal, the transaction still has to be approved by the Federal Reserve, the Pennsylvania Department of Banking and Securities, the Federal Deposit Insurance Corporation and the Office of the Controller of the Currency. Final closing on the deal is expected in the second quarter of 2015.

First Federal of Bucks County was formed in 1885 and First Savings Bank of Perkasie opened in 1922.