The start-up Capstone Bancshares Inc. in Tuscaloosa, Ala., said Friday that it has agreed to buy Security Federal Bancorp Inc., also in Tuscaloosa, for an undisclosed price.
Security has $59.6 million of assets and two branches, according to Federal Deposit Insurance Corp. data. Its first-quarter earnings fell nearly 80% from a year earlier, to $23,000, as net interest income shrank and expenses grew.
J. Daniel Sizemore, Capstone's chairman and chief executive officer, said in a press release that the thrift company has "a great reputation, a great management team, and desirable locations."
This would be the second purchase by Capstone, a recently formed bank holding company with $120 million of assets. It bought South Alabama Holding Co. Inc. of McIntosh in March.
The Security deal is expected to close in the fourth quarter.
