Capital City Bank to Buy Ga.-Based Farmers & Merchants Bank

<p>Capital City Bank Group Inc. agreed to buy Georgia-based Farmers & Merchants Bank, expanding its presence in that state.</p><p>Capital City Bank plans to buy the company for $66.6 million in cash and stock and expects the deal to slightly dilute fourth-quarter earnings because of merger costs. But the transaction would add between 12 cents and 16 cents to 2005, according to a press release Thursday.</p><p>Farmers & Merchants has total deposits of $310 million and total assets of $411 million with three offices in Laurens County, Georgia.</p><p>The company's president, McGrath Keen Jr., will join Capital City's board.</p><p>Capital City has 57 banking offices and five loan production offices in Florida, Georgia and Alabama.</p>