STEVENSON — With final regulatory approval received, the merger between First Southern State Bank and Farmers and Merchants Bank of Centre has been finalized, according to a press release Monday from First Southern President and Chief Executive Officer Mike Ellenburg.

Ellenburg said that the tactical merger between the two independent banks would become effective immediately, although the blending of technologies and operating systems would roll out through the first quarter of 2009. The new institution will operate as First Southern State Bank.

Ellenburg was quick to point out that Farmers & Merchants Bank customers could continue “to bank as they have become accustomed to as we welcome them to the First Southern State Bank family.”

“It’s important that our new customers find a comfort zone with how we do business,” he said. “We anticipate this merger to be fairly seamless, with as little interruption as possible to the banking practices they have long enjoyed as well as the relationships they have established. In the coming weeks, aside from new signs being erected, I believe our new customers will enjoy the added benefits First Southern State Bank can offer them.”

Ellenburg also pointed out the like-mindedness of the old-line banks. First Southern State Bank is two years away from its centennial celebration, while Farmers & Merchants Bank was established shortly thereafter, in 1917.

“Both of these banks have existed nearly one hundred years by following similar, sound and proven banking principles,” Ellenburg said. “As we come together as one bank, we will continue to embrace the ways in which we’ve always done business. It works.”

For First Southern State Bank, the evidence of its sound operations is reflected by the bank’s continuing receipt of the Bauer 5-Star Award, given to banks across America who meet stringent requirements for capital strength, operating performance and in key ratio considerations. The 5-Star Award sets First Southern as “among the strongest banks in America,” according to Bauer Financial Services documents.

James Beall, Chairman, President and CEO of Farmers & Merchants Bank, agreed with Ellenburg that the transition “brings together two fine, well-established banks with similar goals for their customers.”

“The changing landscape of banking in America, as evidenced by the recent problems suffered by Wall Street and many large, regional banks, puts more emphasis on true community banks to provide the fiscal integrity Americans expect from their banks,” Beall said. “At the same time, having the ability to join together makes both banks even stronger.”

The new First Southern State Bank will manage assets in excess of $300 million, Ellenburg said.

“But it’s not about our size,” he said. “It’s about how we can prepare for the future and better meet the needs of our customers and the communities we serve.”

First Southern maintains offices in Stevenson, Scottsboro, Higdon, Rainsville and two locations in Fort Payne. Farmers and Merchants Bank operates from Centre with a branch in Leesburg.