USAL Bancorp in Montgomery, Ala., has agreed to buy Escambia County Bank in Flomaton, Ala.
USAL, the parent of the $205 million-asset AmeriFirst Bank, will pay an undisclosed amount of cash for the $77 million-asset Escambia County.
The deal is expected to close in the first quarter.
Escambia County shareholders will also receive a special dividend before the deal’s completion.
USAL will have five branches after the deal closes.
Olsen Palmer advised Escambia County.
The Long Island bank is the latest financial institution to use new equity to restructure its balance sheet and unload low-yielding assets. Its stock price tumbled after the shares were priced at a considerable discount.
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