Alabama National Bancorp., the sixth-largest bank in the state, is acquiring $223 million-asset First American Bancorp of Decatur, Ala.

First American's subsidiary, First American Bank, would remain a separate entity after the acquisition, which is expected to be completed by yearend.

"This merger will firmly establish Alabama National's presence in the northern Alabama market," said John H. Holcomb, chairman and chief executive officer of $929 million-asset Alabama National.

Under terms of the deal, Alabama National would pay $50 million in stock, or about 2.1 times book value and 20 times earnings.

Layoffs are expected at First American, but officials do not know how many, Mr. Holcomb said.

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