The Houston banking entity, marking its first entry into SanAntonio, has signed a definitive agreement for the acquisition forthe privately held CaminoReal Bancshares, the holding company ofCaminoReal Bank, National Association. There are four offices inSan Antonio plus operations in Eagle Pass, Carrizo Springs, CrystalCity and Pearsall. Sterling Bancshares has $2 billion in totalassets and operates 23 offices in the Houston area.

As of Sept. 30, CaminoReal Bancshares had total assets of $291million, $149 million in loans, $256 million in deposits and $24.7million in pro forma shareholders' equity. Sterling is anticipatinga $600,000 pre-tax special charge in connection with themerger.

Buyout terms calls for CaminoReal shareholders to receive$776.18 in cash for each share of stock, based upon 61,188outstanding shares of common stock. CaminoReal's warrantholder willreceive $4.3 million when the takeover is finalized in firstquarter 2001. CaminoReal operational integration is expected tobegin in the new year's second quarter.