The Dolores State Bank and Mancos Valley Bank have announced they have signed a definitive merger agreement, under which DSB has agreed to acquire MVB. The terms of the agreement were not disclosed.

Upon completion of the transaction, the combined company will have about $230 million in total assets, $200 million in total deposits and $108 million in total loans.

The merger agreement has been approved by the board of directors of each company.

With shared resources, the merger will better position each bank to serve its customers and community with greater loan capacity and leading products and services, according to a release announcing the merger.

“We believe the combination of our two community-minded banks will enable us to better serve our customers and the local communities,” said Ed Merritt, president of DSB.

Closing of the transaction, which is expected to occur in the third quarter of 2015, is subject to customary conditions, including regulatory approval.