NexTier Bank and Manor Bank will merge, the financial institutions announced Wednesday, in a deal that is expected to close in the second quarter of 2017.

The banks said Wednesday that they had signed a “definitive merger agreement” that will combine their operations and result in a franchise with total assets in excess of $1.1 billion and 28 branches throughout southwestern Pennsylvania.

The company will continue to operate under the NexTier Bank brand, and Clem Rosenberger, who took over as NexTier’s CEO and president in August, will continue as CEO.

The agreement gives shareholders of Manor bank about $2.33 million in cash, or $531.55 per share, according to a statement released by NexTier Bank. Both banks’ boards of directors unanimously approved the merger, but regulatory and shareholder approvals mean that the deal is expected to close sometime in the second quarter of 2017.

Rosenberger and Manor Bank president and CEO Rand Denale called the merger, which for NexTier expands service into Westmoreland County, a positive step for communities and local economies throughout the region.

“The two banks are very complimentary and NexTier offers that same personal touch our customers have come to expect,” Denale said.

The merger is the third for NexTier in the last three years. It has previously combined with Kittanning-based Farmers & Merchants Bank of Western Pennsylvania and Oakland-based Eureka Bank.