Standard Federal Bank, the Midwest's largest thrift, agreed to buy Heritage Bankcorp in its home state of Michigan in a cash deal valued at $111 million, or 1.7 times book value.

Heritage, based in Taylor, owns Heritage Federal Savings Bank, which has 45 branch offices controlling $930 million of assets.

Standard Federal, which has about $9.8 billion of assets, operates in southern Michigan, northern Indiana, and northwestern Ohio.

Earnings of $54 Million

Thomas R. Ricketts, chairman, president, and chief executive of Standard Federal, said the deal will be accretive to earnings in 1994. The transaction is expected close early next year.

During the fiscal year ended June 30, Heritage earned $7 million, for a 0.75% return on average assets.

Standard Federal earned $54.3 million during 1993's first half, for an ROA of 1.12%.

The company operates 118 branch offices and 200 automated teller machines in its three-state market.

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