ALBUQUERQUE -- First State Bancorp. executed a revised letter of intent to acquire First Bank of Grants, N.M., for about $2.4 million and 172,500 shares of First State's common stock.

The revised terms were agreed upon after a determination that, due to a technicality under generally accepted accounting principles, the transaction could not be completed as a pooling of interests. Under the revised letter of intent, the transaction will be accounted for under the purchase method.

First Bank of Grants has assets of $38 million and operates three branches in Grants, which is about 70 miles west of Albuquerque. At Sept. 30, the bank had deposits of $35 million and shareholder equity of $2.6 million.

First State is a New Mexico-based holding company with assets of $200 million and deposits of $170 million at Sept. 30. Return on equity was 16.09%, and return on assets was 1.3% for the first nine months of 1994. The company has a track record of efficiently serving profitable niche markets.

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