TowneBank (TOWN) in Suffolk, Va., has agreed to buy Franklin Financial (FRNK) in Richmond, Va.

The $4.8 billion-asset TowneBank will pay $275 million, or $23.04 a share, in stock for the $1.1 billion-asset Franklin. The transaction is expected to be immediately accretive to TowneBank's capital ratios and accretive to its earnings starting in 2016.

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