Sterling Bancshares, Inc., Houston, TX (NASDAQ: SBIB) announced that it has entered into a definitive agreement to acquire approximately $520 million in deposits and nineteen branches located throughout Texas from First Banks, Inc., Clayton, MO.  Eleven of the branches are located throughout the Houston metro area and eight of the branches are located throughout the Dallas/Fort Worth metro area.  The deposits acquired consist primarily of core deposits.  In addition, Sterling will purchase approximately $250 million of performing Texas-based loans from First Banks. 

The Carson Medlin Company both initiated the transaction and served as financial advisor to Sterling Bancshares, Inc.

Additional details on the transaction:

• - The largest deal in Texas this year
• - The largest deal in the history of Sterling Bancshares
• - The transaction will double the amount of deposits for Sterling in the Dallas/Fort Worth market
• - Increases Sterling's branch network by 30%