Compass Bancshares said it has agreed to acquire Gainesville, Fla.-based GSB Investments Inc., the parent of Gainesville State Bank. Terms of the deal were not disclosed.
The $209 million-asset GSB Investments has eight Gainesville State Bank branches. Four are in Gainesville, and Keystone Heights, Melrose, Alachua, and Micanopy have one each.
D. Paul Jones Jr., Compass chairman and chief executive officer, said north-central Florida's diverse economy made Gainesville State Bank an attractive buy.
"Gainesville is 60 miles from Jacksonville, where we've built a solid base, and the new (branches) between the cities will make it easier for our customers," Mr. Jones said.
If the deal closes as planned in the first quarter of 1998, Compass would have 42 branches and $1.4 billion of assets in Florida.
The $12.4 billion-asset Compass Bancshares currently has 224 branches in Alabama, Florida, and Texas.