by Laura FreemanReporterHudson -- Morgan Bank, founded in 1990 and synonymous with Hudson, has been acquired by a Lorain-based financial holding company. LNB Bancorp Inc., an $831.5 million financial holding company, and its major subsidiary, Lorain National Bank, a full-service commercial bank, has merged with Morgan Bancorp Inc., the holding company for Morgan Bank N.A., a $128.6 million national bank in Hudson."The merger makes a whole lot of sense and makes Morgan Bank a lot more efficient," said Morgan Bank President William "Wink" Dougherty, noting that it costs a small bank more per dollar to open its doors than a larger bank. LNB Bancorp Inc. acquired Morgan Bancorp Inc. Jan. 16 in a stock and cash merger transaction valued at approximately $26.5 million. The two banks retain their names and leadership.Initially there will be no changes for customers, and any changes in the future would be done to make it as easy and convenient as possible for the customer, said Dougherty, who will retain his job as president of Morgan Bank. "As we go forward, two strong community banks are committed to delivering the best services and products we can," Dougherty said.LNB Bancorp Inc. serves customers in Lorain, eastern Erie and western Cuyahoga counties, according to LNB Bancorp spokesperson W. John Fuller.Fuller said currently there will be no changes in bank employees, but in the future personnel may be reduced where duties overlap.Fuller said both companies benefit through expansion and added services."Being part of a larger bank increases the lending level and allows larger loans to small and medium businesses," Fuller said.The merger is expected to close in September 2007 after regulatory approvals, approval by Morgan Bancorp shareholders and completion of closing conditions.Shareholders of Morgan would be entitled to receive cash, common shares of LNB or a combination thereof under the terms of the agreement.Dougherty said it was a relatively quick decision to merge, beginning with talks at the end of last year."We complement each other," he said. "We have the same customer service philosophy."Dougherty said the merger allows Morgan Bank to offer more services and banking at LNB's 22 branch locations.Morgan Bank has approximately 23 percent of the deposit market share in Hudson, which includes savings, checking, CDs and money market accounts, Dougherty said.Editor's note: Freeman is a reporter for the Hudson Hub-Times.E-mail: lfreeman@recordpub.comPhone: 330-688-0088 ext. 3150