Owners of the Bank of Brodhead announced the bank intends to buy out Farmers & Merchants Bank in Orfordville and merge the two companies later this year.

The Bank of Brodhead announced Thursday it has entered into an agreement and merger plan with the Farmers & Merchants Bank.

The banks expect to complete the proposed merger later this year, pending approval by state regulators and the banks’ shareholders.

Under the deal, the two banks would be merged under the name Bank of Brodhead.

Brodhead Bancshares, the Bank of Brodhead’s holding company, would assume holdings of both banks, the companies said.

The two banks are state-chartered community banks. Both have operated in their respective communities for more than a century, Farmers & Merchants Bank President Eric C. Christensen said in a statement.

Michael J. Olson, president of the Bank of Brodhead’s holding company Brodhead Bancshares, said in a statement that the two banks have “similar cultures” and “share a similar principle of what a community bank means to a community.”

Under the merger, the Bank of Brodhead would extend services it now offers to Farmers & Merchants Bank, including home equity lines of credit, mobile banking and remote deposit, the banks said.

The banks did not disclose financial details of the merger and did not give details of how staffing might be handled at the two banks.

The banks said Farmers & Merchants Executive Vice President Craig P. O’Leary will remain in his current role and would join the Bank of Brodhead’s board of directors.