The company, which agreed to buy Southwest Bancshares in Mobile, also plans to sell $45 million in stock to help fund the deal.
The merger will create a bank with 13 branches and roughly $950 million in assets.
AloStar, based in Birmingham, Ala., was formed following the 2011 failure of Nexity Bank.
The Tennessee bank has agreed to pay nearly $85 million for Capstone Bancshares in Alabama.
