UPDATE 1-FirstMerit buys some deposits, branches from First Bank

* Buys $1.2 bln deposits, 24 Chicago branches

* Sees deal adding to EPS in 2010

* Sees one-time costs of $3.5 mln

* Stock rises about 6 pct

Nov 11 (Reuters) - FirstMerit Corp (FMER.O), an Ohio finance firm, said it agreed to buy $1.2 billion of deposits and 24 branches from First Bank, a unit of First Banks Inc (FRBA.OB), to enter the Chicago market.

It will also acquire all asset-based loans from an affiliate of First Bank.

FirstMerit's shares rose about 6 percent to $19.13 in late afternoon trade on Nasdaq.

The company, which has been eyeing acquisitions for the past couple of quarters, sees the deal adding to earnings per share in 2010.

FirstMerit will pay about $42 million to First Bank based on Sept. 30 deposits, while the latter is expected to deliver about $1.2 billion of deposits at the time of closing of the deal, which is seen by the first quarter of 2010.

The company, which does not believe raising capital will be immediately imperative for the deals, said the acquisitions involve one-time costs of about $3.5 million. (Reporting by Anurag Kotoky in Bangalore; Editing by Maju Samuel)