First State Bank of DeKalb County in Fort Payne, Ala., has agreed to buy First Bank of the South in Rainsville, Ala.

The $98 million-asset First State and the $84 million-asset First Bank of the South, both privately held, did not disclose financial terms. The deal is expected to close in the third quarter.

Benji Willmon, First Bank of the South's CEO, will retire upon the deal's closing, said David Henderson, president of First State Bank.

First Bank of the South has three branches, in Rainsville, Henagar and Grant, Ala.

It would be the first bank acquisition for First State, which was founded in 1981. First State has two offices, both in Fort Payne.

National Capital LLC was financial adviser to First State Bank. Fenimore, Kay, Harrison & Ford was its legal counsel.

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