NexTier Bank and Farmers & Merchants Bank of Western PA announced this morning that they will merge to create a $1 billion bank.

The “new” NexTier Bank will have 24 locations in northern Allegheny, Butler and Armstrong counties.

NexTier will be headquartered in Butler and have about 240 employees.

Subject to regulatory approvals, the merger is expected to close in the first quarter of 2014.

NexTier has assets of $512 million with corporate offices in Butler and Wexford. It includes NexTier Bank, NexTier Insurance Services, NexTier Wealth Management.

It has 15 community offices.

Farmers & Merchants Bank of Western PA has assets of $425 million, and its corporate office is in Kittanning.

It includes F&M Bank and F&M Wealth Management, and it has 9 community offices in Armstrong County.