Tullahoma-based American City Bank and First State Bank of Henderson have signed an agreement to merge the two banks.
If approved by regulatory agencies, the two banks will be owned by FSB Bancshares Inc., the holding company of First State Bank.
American City Bank was chartered in 1974 in Tullahoma. First State Bank was established in 1889 in Henderson. The two companies expect to close the merger in the second quarter of this year.
Financial details of the proposed merger weren't released.
James L. Clayton, chairman of FSB Bancshares is joining the American City Bank board as vice chairman.
"This combination is an ideal match and one that will add significant economic support to our community while benefiting our team members," says George Vibbert, chairman of American City. "We are pleased that Mr. Clayton has agreed to join our board as vice chairman and we are assured that the board and staff will be retained while additional capital will be available to support the growth in our market."
Combined, American City and First State Bank will operate six offices with total assets of $260 million.

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