MERCANTILE TO ACQUIRE AMERIBANC

ST. LOUIS - Mercantile Bancorporation Inc. has announced an agreement to acquire Ameribanc Inc., a $1.2 billion bank holding company headquartered at St. Joseph.

Ameribanc Inc. will become part of St. Louis-based Mercantile Bancorporation under an agreement that will bring Ameribanc stockholders the equivalent of $26 a share in cash and stock.

The $87 million deal, announced Tuesday, is subject to approval by banking regulators and Americbanc stockholders.

Mercantile is Missouri's second-largest bank holding company, after Boatmen's Bancshares Inc., also of St. Louis.

"The acquisition of Ameribanc will further strengthen Mercantile's Missouri franchise," said Thomas H. Jacobsen, Mercantile chairman and chief executive officer. "It provides much broader representation in northwest Missouri, including leadership in St. Joseph, a key market in that part of the state."

The acquisition of Ameribanc, with 11 banks and 776 employees, will increase Mercantile's total assets from $8.02 billion to $9.22 billion.

Ameribanc operates banks inMaryville, Plattsburg-Edgerton, Platte County, St. Louis, Trenton, Union and Versailles. Markets that at present have both Mercantile and Ameribanc facilities include St. Louis, Kansas City, Trenton, and Franklin County.

"We're looking forward to being part of the strong, progressive and customer-oriented banking organizations that Mercantile is today," said Charles H. Price II, Ameribanc chairman, president and chief executive officer. "For our customers, that means access to the broader capabilities of the Mercantile system."

Price, former U.S. ambassador to Great Britain, would become chairman of the renamed St. Joseph bank and also of Mercantile Bank of Kansas City. Stephen Bunten, now chairman, president and chief executive officer of Mercantile's Kansas City bank, would continue in the latter two positions.

Mercantile Bancorporation has 26 banks in Illinois and Missouri, including Mercantile Bank of Cape Girardeau. The acquisition of Old National Bancshares Inc., with assets of $173 million and two banks in Carlyle, Ill., and Centralia, Ill., is expected to be completed in December.

Mercantile's other subsidiaries include a brokerage services company, an asset-based lending company, an investment advisory services company, and a credit life insurance company.