Peoples State Bank, Hamtramck, Mich., said it has a deal to buy nearby Madison National Bank for an undisclosed sum.

The acquisition, the first in Peoples' 89-year history, would nearly double its assets, to $360 million. Robert L. Cole, Peoples' president and chief executive officer, said the company set its sights on Madison National because of its proximity to Peoples' market.

"It's not like we're going 100 miles away," he said. "We're going into a market we're very familiar with."

Though Peoples operates a branch in Madison's hometown of Madison Heights, Mr. Cole said no branches would be closed as a result of the merger. The deal is expected to close in this quarter.

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