BIRMINGHAM, Ala. -- Expanding its franchise in northwestern Georgia, Amsouth Bancorp. said it would purchase First Federal Savings Bank of Calhoun, Ga., for $14 million in stock.
Amsouth, which is based in Birmingham, said late Tuesday it had signed a definitive agreement to buy the $69.4 million-asset thrift for 1.23 times book value. The deal, which will be accounted for as a pooling of interest, is expected to close in 1994.
Amsouth's shares were trading up 12.5 cents at $31.50 at noon Wednesday.
First Federal is "strategically located between our Chattanooga franchise and the Georgia State Bank of Rome, which we are in the process of acquiring," said Amsouth Chairman John Woods in a prepared statement.
The thrift, which has assets of $69.4 million and deposits of $57.7 million, earned $1 million in the nine months ended June 30, for a return on average assets of 2.01% and a return on average equity of 12.47%.
Amsouth, which has $11.1 billion in assets, has six acquisitions pending in Florida as well as the two Georgia deals.