Sterling Bank, a subsidiary of Sterling Bancshares, has entered into a definitive purchase and assumption agreement to acquire approximately $500 million in deposits and 19 Texas bank branches from First Bank, a Missouri state-chartered bank. The deposits to be acquired consist primarily of core deposits.
Of the 19 branches to be acquired, 11 are in the Houston metropolitan area and eight are located in the Dallas metropolitan area. In addition, Sterling will also purchase approximately $230 million of performing business and consumer-related Texas-based loans from First Bank.
Sterling Bank’s footprint in the North Texas market is expected to grow from 17 to 25 branches and approximately double the amount of Sterling’s deposits in that market. Sterling’s Houston presence will increase from 30 to 41 branches following the transaction.
Downey Bridgwater, chairman, president and CEO of Sterling Bancshares, said: We look forward to working with the Texas employees and customers of First Bank and to contributing to their success. This expansion comes at an opportune time for us, as it enhances our liquidity and positions us to take advantage of future growth opportunities within these markets.
This transaction is expected to be completed in the fourth quarter of 2009, subject to regulatory approval and other customary closing conditions.
Sterling Bancshares is a Houston-based bank holding company with total assets of $4.9 billion. It operates 60 banking centers in the greater metropolitan areas of Houston, San Antonio, Dallas and Fort Worth, Texas.
