Northeast Tampa community banks plan merger. (Terrace Bank of Florida; University State Bank)

Tampa

Terrace Bank of Florida and University State Bank, both located within blocks of each other along Fowler Avenue in Tampa, plan to merge.

The deal involves a stock and cash swap that should amount to about $3.4 million. The combined community bank would have $56 million in assets.

The banks have submitted three merger applications to the state comptroller and one application for the formation of a holding company to the Federal Reserve Bank in Atlanta. Until those applications have been approved by the state Department of Banking and Finance, officials of the two banks said that they could not comment on the transaction.

University State Bank …