CCFNB Bancorp. Inc. and Muncy Bank Financial Inc. announced the signing of a definitive merger agreement Tuesday to combine the two companies in a strategic merger of equals.

According to a news release, the combined company would have about $1.6 billion in total assets, $1.2 billion of total deposits, $1 billion in total loans and $144 million of combined shareholders’ equity.

No mandatory layoffs are anticipated, and no branches are expected to close as a result of the transaction.

“This strategic combination of high performing Central Pennsylvania community banks will create a premier financial institution with greater scale, operating leverage, and resources to compete in the highly competitive Central PA market,” the news release said. “Muncy Bank Financial will merge with and into CCFNB Bancorp, and Muncy’s subsidiary bank, The Muncy Bank and Trust Co., will merge with and into First Columbia Bank & Trust Co., CCFNB’s banking subsidiary. The combined bank will be renamed Muncy Columbia Bank to represent the storied histories of both financial institutions.”

In this all-stock transaction with a total deal value of $65.6 million — calculated on the basis of the average closing price per share on the trading days within the 30 consecutive trading days ending April 17, 2023 on which one hundred or more shares of CCFNB common stock traded — Muncy Bank Financial Inc. common shareholders will receive a fixed exchange ratio of 0.9259 shares of CCFNB for each Muncy share they own.

The boards of directors of the pro forma CCFNB and Muncy Columbia Bank will consist of eight members from CCFNB and six from Muncy. Concurrent with the transaction, the pro forma CCFNB will also become a registrant under the Securities Exchange Act of 1934.

Lance O. Diehl, CCFNB’s current president and CEO, will be the chairman, president and CEO of the pro forma CCFNB and executive chairman of Muncy Columbia Bank. Robert J. Glunk, currently chairman, president and CEO of Muncy Bank Financial Inc., will be the chief operating officer of the pro forma CCFNB and president and CEO of Muncy Columbia Bank.

“Senior management of both banks will continue to be key leaders of the pro-forma Muncy Columbia Bank and will have offices in Bloomsburg, Muncy and South Williamsport,” the news release said. “Back offices and operations centers will be located in both Muncy and Bloomsburg.”

“We are excited about this coming together of our community banks,” Diehl said, according to the news release. “We are delighted to have found a like-minded partner right in our backyard. I have the utmost confidence in our ability to work together and to leverage each other’s strengths. Our banks not only share similar cultures and values, but we also benefit from complementary business models, internal systems and product offerings.”

“Together our community bank will be stronger and better positioned to compete in the ever-changing banking marketplace,” Glunk said, according to the news release. “We believe our unified bank will offer customers the best of all worlds — a hometown bank that remains headquartered locally and makes decisions at the local level yet has the scale to create added value for customers with robust product offerings and responsive online or in-person customer experiences.”

The merger agreement was unanimously approved by the boards of directors of both companies. The combination is expected to be completed in the fourth quarter of 2023, subject to approval of both companies’ shareholders, regulatory approvals and other customary closing conditions.