F&M National Corp. of Winchester, Va., has a deal to buy Security Bank Corp. for $16.5 million in stock.

The price is 2.08 times Security's book value and 40 times earnings.

Security Bank, based in Manassas, Va., has $61 million of assets and operates two branches there. F&M National is a $2.8 billion-asset holding company that operates nine banks in Virginia, Maryland, and West Virginia.

The deal would expand F&M's presence in northern Virginia to 29 branches. It is expected to close early next year.

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