FIRST GRANITE &lt;FGBI> AGREES TO BE ACQUIRED

  First Granite Bancorp Inc
  said it agreed in principle to become a wholly owned subsidiary
  of Magna Group Inc &lt;MAGI>.
      Under terms of the agreement, First Granite shareholders
  will receive 2.175 shares of Magna for each First Granite share
  held. First Granite shareholders will be asked to approve the
  tranaction in late summer.
      First Granite, which has 675,000 shares outstanding, as of
  Dec 31, 1986 had assets of 186.5 mln dlrs. It owns First
  Granite City National Bank and Colonial Bank of Granite City,
  Ill.
      Magna Groups as of Dec 31, 1986 had assets of 1.47 billion
  dlrs. It owns 13 banks, a data services company, a mortgage
  company and a trust company, serving St. Louis as well as
  Springfield, Centralia and Decatur, Ill.
  

