Sterling Bancshares, Inc., Houston, Texas has agreed to acquire Partners Bank of Texas, Humble, Texas. Sterling Bancshares is a $4.3 billion asset Texas banking organization. Partners Bank of Texas has $185 million in assets and operates three offices in the Montgomery and Harris County markets of metropolitan Houston.

Partners Bank shareholders will receive approximately $52 million in cash and stock in the transaction. The parties expect the transaction to close in the second quarter of 2007.

The Carson Medlin Company served as financial advisor to Partners Bank of Texas in the transaction.