South Alabama Bancorp. announced it would buy Commercial National Bank of Demopolis, Ala., for $18.2 million in stock. The deal calls for Commercial National to become a separate subsidiary of Mobile-based South Alabama. Commercial National has two branches and $73 million of assets.

"Commercial National Bank is an extremely important addition to our company," said W. Bibb Lamar Jr., president and chief executive officer of South Alabama.

South Alabama is the parent of three Alabama banks with a combined $400 million of assets. The deal is expected to close during the fourth quarter.

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