FB Financial, the Tennessee-based parent of FirstBank, has agreed to acquire local peer Franklin Financial Network, the parent of Franklin Synergy Bank, in a deal worth around $611m.

Under the agreement, Franklin will merge with and into FB Financial upon deal completion in the third quarter of this year.

Franklin has 15 branches across Williamson, Rutherford and Davidson counties and $3.9bn in assets.

Upon the integration with Franklin, FB Financial will be ranked the sixth by deposits in the Nashville MSA, first in Williamson County and second in Rutherford County.

As per the deal terms, shareholders of Franklin shareholders will be entitled to get 0.9650 shares of FB Financial common stock and $2.00 cash for each share held.

As part of the transaction, key executives of Franklin will be absorbed by FB Financial.

Moreover, three Franklin board members will get seats on the FB Financial board.

FB Financial will set up a primary operations centre and mortgage base at Franklin’s corporate headquarters in downtown Franklin.

The transaction already received the green light from the two companies’ boards. It is currently pending shareholder and regulatory nod.

FB Financial president and CEO Christopher Holmes said: “The combination provides FB Financial meaningful earnings accretion, while remaining neutral on tangible book value per share.

“As in every combination, protecting the balance sheet is paramount, so these financial returns come after taking a conservative approach to the balance sheet; we are assuming a 3.9% mark to loans.

“We are also assuming 30% cost savings, even though we have significant overlap in our respective branch networks. We will accelerate Franklin’s strategy of exiting non-strategic assets and growing the core community bank.”