Sidney D. Kline, president of the American Bank of Reading announced yesterday a merger between the bank and the First National Bank of Coaldale.

Kline said officers and employees of the Coaldale bank will remain the same and directors will be named to an advisory committee of the Reading bank. They are Evan Evans, Norman Richards, Walter Evans, Joseph A. Biasi Jr., Kermit L. Hoffman and William J. Clements.

Evan Evans, who was president of the Coaldale bank, will become a director of the Reading bank. Walter Evans will be the manager of the Coaldale office.

Kline said shareholders of the Coaldale bank will receive 1-1/4 share of the common stock of American bank for each share of stock of the First National Bank.