BLOOMINGTON, Ill. - Commerce Bancshares, St. Louis, agreed Monday to acquire Peoples Mid-Illinois Corp. in a stock swap valued by the American Banker at approximately $89.3 million.

The merger will add $1 billion of assets to Commerce's $7.8 billion.

Commerce intends to exchange 2.8 million shares of its stock, at a ratio of 0.7987, based on 3,550,328 shares of Peoples that are currently issued and outstanding.

Commerce shares recently traded at $31 per share.

The transaction is expected to be completed in the first quarter of 1995. "Expansion in central Illinois is a top priority for us," said David Kemper, Commerce's chief executive.

"This will significantly increase our presence with a premier bank in a top market."

People's CEO Andrew Anderson said his company had been considering "joining a large banking company that would enable us to offer additional services and products to our customers while allowing us to grow in this competitive environment."

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