NexTier, Inc., the holding company for NexTier Bank, N.A. and Eureka Financial Corp., the holding company for Eureka Bank, announced Thursday a merger agreement.

The combined company will operate under the NexTier Bank brand.

Richard J. Krauland, NexTier president and CEO, will lead the new institution as CEO.

The new bank will have total assets in excess of $1.1 billion and 26 branches throughout Southwestern Pennsylvania.

Pending regulatory and shareholder approvals, the merger is expected to close in the first quarter of 2016.

NexTier Inc. has corporate offices in Kittanning.

Eureka Financial Corp., a savings and loan holding company, is headquartered in Pittsburgh.