BIRMINGHAM, Ala. - First Alabama Bancshares Inc. said it has entered into an agreement to acquire Republic Bancshares of Nashville, Tenn., and its subsidiary, Franklin County Bank of Winchester, Tenn.
First Alabama said it would distribute 215,000 shares of common stock to Republic and Franklin shareholders on a pro rata basis. Those shares would be worth about $7.2 million at the current stock price.
First Alabama could pay up to 25,000 additional shares if the acquisition meets certain financial performance levels in the two years following the merger, which the companies expect to complete in the first half of 1993.
Franklin would add $61 million in assets to the $7.4 billion of First Alabama Bancshares. The Birmingham company expects to complete its acquisition of the $380 million-asset Security Federal Savings and Loan of Nashville in December.