Comerica (NYSE:CMA) has announced it has entered into an agreement to buy regional bank Sterling Bancshares (NYSE:SBIB) for $1.03 billion in a stock-for-stock deal. The transaction values Sterling shares at $9.99 per share - a 30% premium to Friday's closing price.
The deal highlights a trend where regional banks are seeking to bolster their deposit base and extend their reach to become even stronger.
Comerica's Chairman and CEO Ralph Babb Jr. said, "Sterling has a very appealing branch network which almost doubles our presence in Houston, provides an entry into the San Antonio market, one of the fastest growing metropolitan areas in the country, and complements our banking center network in Dallas-Fort Worth. Sterling also has a very attractive deposit base, with a relatively large component of noninterest-bearing deposits. We believe this gives us the ability to leverage additional marketing capacity to offer a wide array of products through a larger distribution network, particularly to middle market and small business companies."