Flag Financial Corp., LaGrange, Ga., has a deal to buy Brown Bank for $3.5 million of stock.

Flag Financial, with $433 million of assets, will pay two times book for Metter, Ga.-based Brown.

"This deal is a natural extension of Flag's presence throughout west- central and middle Georgia," said John S. Holle, Flag Financial's chairman.

Flag is the parent of three Georgia banks. Brown, with $32 million of assets, operates three branches.

The deal is expected to close during the third quarter.

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