BUSINESS MEMO: MERCANTILE TO EXPAND

Mercantile Bancorporation Inc. of St. Louis has announced plans to expand its banking operations in Kansas through a merger with the Peoples State Bank of Topeka.

The $96 million-asset Peoples State Bank operates three sites in Topeka and one each in Rossville and Silver Lake.

The terms of the merger calls for Mercantile to issue 325,843 shares of common stock in exchange for outstanding common stock of Peoples State Bank. Mercantile may also purchase up to 325,843 shares of its own common stock on the open market.

The transaction is subject to approval of Peoples State Bank shareholders and all appropriate regulatory authorities.

Mercantile Bancorporation owns 52 financial institutions in Missouri -- including Cape Girardeau -- Eastern Kansas, Southern Illinois, Northern Iowa and Arkansas.