Continuing a string of in-state deals this year, South Alabama Bancorp. has announced plans to buy Sweet Water (Ala.) State Bancshares for $12.3 million in stock.

Mobile-based South Alabama, with $401 million of assets, said it would exchange 14.17 shares of its stock for each share of Sweet Water stock. If South Alabama's stock price falls below $14 or rises above $16 a share, the exchange ratio would change under a predetermined formula.

A closing date has yet to be announced.

Sweet Water Bank is a $48.2 million-asset bank with branches in Linden, Sweet Water, and Thomasville.

The deal is the third announced this year by South Alabama.

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