NexTier Bank Merger Complete

 

It’s been a long process, but Farmers & Merchants Bank – based in Kittanning – and NexTier Bank – of Butler – have merged to become one.

 

NexTier Bank President and CEO Richard Krauland said the local community was curious before the switch at the beginning of October.

 

“This is not a new bank – I think a lot of people have been confused about that,” Krauland said. “This is the F&M Bank we all have known and loved, but we acquired and merged with the NexTier bank of Butler. I know a lot of people would’ve preferred we chose the Farmers and Merchants name – I believe those two names individually go back over 110 years – but there is also a bank in Emlenton called Farmers.”

 

Krauland added that some towns in Butler and Armstrong counties also had a Farmers National Bank so that towns would have two banks with similar names and caused confusion. The locations still have a majority of the same management team and staff.

 

“The name has changed and the computer system we’re using also has changed,” Krauland said.

 

The banks formally merged October 1.

 

Confusion was also a factor after a welcome guide was sent to customers in September explaining the new system, but any personal crises have been averted.

 

“Because it was so far before the change-over, I think a lot of folks didn’t recall what was going to happen – so when our customers signed on to Internet banking for the first time, thousands of customers tried to sign in using their old password (rather than the last four digits of their social security number to access the system),” Krauland said.

 

“We were overwhelmed by the sheer number – we had 600 calls (October 6) and I’m sure there were hundreds of others that got tired of waiting and hung up. We had people lined out the door.”

 

Bank management also had to issue new ATM cards to former Farmers and Merchants customers, which caused some confusion.

The merger is to create a nearly $1 billion financial services industry and retain the NexTier Bank name across two dozen locations in Armstrong, Butler and Allegheny Counties.

 

“We believe towns like Kittanning, Butler, Freeport deserve to have and should have a strong local bank. It’s becoming more-and-more difficult for small banks to survive – the rules are just getting tighter-and-tighter.”

 

Farmers National Bank and Merchants National Bank merged together effective April 1, 2008 and then held $320 million in assets before the latest merger – which was actually acquired three years ago.

 

There are about 250 employees in-total after the merger. No locations were closed in the process.

 

“It was more of a way to expand our geographic reach without closing any buildings,” Krauland said. “It was very clear early-on that the plan wasn’t to cut jobs in order to save money and increase profits.”

 

New services include mobile banking, insurance services and wealth management.

 

Banking leaders will thank customers for their patience with customer appreciation events Friday at all locations – including the branch in downtown Kittanning, where customers will be able to play games, enter to win prizes and have free coin appraisals.