State Bank of Graymont has agreed to acquire a thrift branch with $6.5 million of deposits.

The $43.5 million-asset bank would pay about $520,000 for Citizens Savings Bank's branch in Chenoa, about 12 miles from State Bank's headquarters.

C. William Landefeld, Citizens' president and chief executive, said the Chenoa office no longer fits into the thrift's long-range marketing plans.

Ronald L. Minnaert, president of State Bank, said his company has been looking for expansion opportunities for years but the Citizens branch acquisition is the first to make sense for it.

"Most banks are buyers or sellers right now," he said.

"We were just waiting for an opportunity that was compatible size-wise."

Mr. Minnaert said the bank is negotiating other acquisitions.

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