Press Release

Merchants Bancorp of Pennsylvania and F&A Financial Corporation Announce Signing of Definitive Merger Agreement

KITTANNING, PA – November 19, 2007 – Merchants Bancorp of Pennsylvania, Inc. (“Merchants”), parent of Merchants National Bank of Kittanning, and F&A Financial Corporation (“F&A”), parent of The Farmers National Bank of Kittanning, jointly announced today the signing of a definitive merger agreement pursuant to which Merchants will merge with F&A, with Merchants as the surviving company. Concurrently with the merger Merchants National Bank of Kittanning and The Farmers National Bank of Kittanning will also merge. The name of the combined bank will be Farmers & Merchants Bank of Western Pennsylvania N.A.

The agreement has been approved by the Boards of Directors of both Merchants and F&A. The merger is subject to shareholder and regulatory approvals. The merger is expected to close in the first quarter 2008. The terms of the transaction have not been publicly disclosed.

“This merger combines two community banks that have served Armstrong County for over 110 years each with one shared goal: To provide customers with superior service by friendly and well-qualified employees,” said Sally J. Anderson, CEO of Merchants National Bank of Kittanning. “By pooling our resources and talent, we will certainly enhance our ability to serve our customers.”

“This merger of equals will be mutually beneficial for our customers, employees and shareholders. We will have the ability to serve customers as a community bank, while offering services of a larger institution,” said Richard Krauland, CEO of The Farmers National Bank of Kittanning. “Our customers will benefit from the additional branch and ATM locations, as well as new products and services.”

Upon completion of the merger, Merchants’ will have seven branch locations in Armstrong County. No locations will be closed as a result of the merger and no layoffs are planned.

“We are also pleased to announce that a new branch location will be opening in Leechburg, PA after the merger is complete,” said Mr. Krauland. “This merger is about enhancing service and improving customer convenience. Our customers in the southern part of the county will have the convenience of a local branch.”

Ms. Anderson added, “With our increased size comes new capabilities and new opportunities. The combined bank makes Merchants a stronger competitor, offering more products and services to compete with larger institutions.”

Merchants National Bank of Kittanning has supported the community and our customers for more than 110 years. Nestled in the heart of Armstrong County Pennsylvania, Merchants National Bank of Kittanning provides four convenient locations in Downtown Kittanning, West Kittanning, 422 East, and Worthington. Additional customer convenience is provided through numerous electronic banking channels. For more information, visit www.merchantskittanning.com.

The Farmers National Bank of Kittanning is the oldest banking institution still operating under its original charter in Kittanning. The Farmers National Bank of Kittanning offers superior service, convenient branches with full range of financial products for consumers, businesses, investors, non-profit organizations and government agencies. For more information, visit www.farmersnatl.com

Janney Montgomery Scott LLC is acting as a financial advisor to Merchants’ board of directors and Ballard Spahr Andrews & Ingersoll, LLP is serving as legal counsel. Cohen & Grigsby, P.C. is serving as legal counsel to F&A.