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EXHIBIT 99.1
STERLING BANCSHARES ENTERS SAN ANTONIO MARKET WITH ACQUISITION OF CAMINOREAL
BANK
October 24, 2000 09:00:00 AM ET
HOUSTON, Oct. 24 /PRNewswire/ -- Sterling Bancshares, Inc. (Nasdaq: SBIB)
announced today that it has entered ---- into a definitive agreement to acquire
CaminoReal Bancshares of Texas, Inc., San Antonio, Texas and its subsidiary
bank, CaminoReal Bank, National Association. The acquisition is structured as a
cash merger and, therefore, will be accounted for as a purchase.
CaminoReal Bancshares is privately held and is the bank holding company of
CaminoReal Bank, National Association, which operates four bank offices in San
Antonio and four banking offices in the nearby South Texas cities of Eagle Pass,
Carrizo Springs, Crystal City and Pearsall. As of September 30, 2000, CaminoReal
Bancshares had total assets of $291 million, loans of $149 million, deposits of
$256 million, and pro forma shareholders' equity of $24.7 million.
J. Downey Bridgwater, President of Sterling, commented, "We are thrilled at the
opportunity to enter the vibrant San Antonio and South Texas markets through
CaminoReal's strong franchise. The opportunity to become the leading financial
institution serving owner-operated businesses in San Antonio is excellent. By
adding our financial resources, technological and operational capabilities, and
support services to the customers, employees and management of CaminoReal, we
are confident that Sterling will successfully capitalize on the strong growth
opportunities that exist in San Antonio."
The total merger consideration to be paid by Sterling to the shareholders and
warrantholder of CaminoReal is $51.8 million in cash. The shareholders of
CaminoReal will receive $776.18 in cash for each share of CaminoReal common
stock based upon 61,188 outstanding shares of common stock of CaminoReal, after
giving effect to the conversion of outstanding stock options, convertible
subordinated debentures, and preferred stock. The warrantholder of CaminoReal
will receive $4.3 million. The proposed merger is subject to customary closing
conditions, including receipt of all requisite regulatory approvals and the
approval of CaminoReal's shareholders. The transaction is expected to close
during the first quarter of 2001, with operational integration anticipated to
occur in the second quarter of 2001.
Sterling anticipates that the acquisition of CaminoReal will be accretive to
earnings per share by 3% in the first full year of operations following the
integration of CaminoReal Bank into Sterling Bank. Additional earnings will
result from enhanced loan growth and stronger non-interest income. Minimal cost
savings have been built into the accretion analysis since Sterling has no
existing presence in San Antonio. Sterling expects to incur a pretax special
charge of $600,000 in connection with the merger.
Mr. Bridgwater emphasized, "We fully intend to look to the current management
team and bankers at CaminoReal to take the leadership role in executing a
successful growth strategy in the San Antonio and South Texas markets. While we
will provide all of the necessary
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support and enhanced capacity for such growth, the same local philosophy that we
have successfully followed in Houston will be followed in San Antonio and our
other markets."
Michael G. Sweeney, President and CEO of CaminoReal, stated, "We are extremely
excited to join forces with Sterling. Sterling's decentralized decision-making
model, together with its disciplined focus on serving the owner-operated
business segment through extraordinary personal service, attracted us to
Sterling. We also recognized that a merger with Sterling would allow the
franchise that our customers and bankers have built to continue to grow through
expanded levels of technology, financial products and services, and personal
service."
George Martinez, Chairman of Sterling, said, "We welcome the officers, employees
and customers of CaminoReal to Sterling. Our mutual commitment to local
decision-making and exceptional personal service will make this a seamless
transition for the customers of CaminoReal, while providing them with increased
lending capabilities, a broader array of products and services, and the benefits
of customer-oriented new technologies. We also believe that our expansion
outside of Houston into the San Antonio market, as well as our entry into the
Dallas market later this year, will greatly benefit our shareholders. By
becoming the Texas bank for owner-operated business in the three largest cities
in Texas and three of the ten largest cities in the United States, we are
confident that Sterling will consistently generate strong financial results for
our shareholders."
Sterling will be hosting a conference call to discuss the acquisition at 11:00
a.m. EDT. To participate in this call please dial 212-271-4747, 10 to 15 minutes
prior to the start time. To access the replay, please dial 1-858-812-6440 and
use the passcode "16722043" from two hours after the end of the call until 11:59
p.m. (EDT) on Friday, October 27, 2000. You can also access the call by visiting
www.vcall.com approximately 15 minutes before the call. Sterling Bancshares,
Inc., with $2.0 billion in total assets, is a Houston-based bank holding company
that operates twenty-three community banking offices in the Houston area. The
Company also anticipates the opening of its Dallas office in the fourth quarter.
Except for historical information contained herein, this press release contains
forward-looking statements that involve risks and uncertainties, including, but
not limited to specific risks associated with the effects of future economic
conditions on the Company and its customers; governmental monetary and fiscal
policies, as well as legislative and regulatory changes; the risks of changes in
interest rates on the level and composition of deposits, loan demand, and the
values of loan collateral, securities and interest rate protection agreements,
as well as interest rate risks; the effects of competition from other commercial
banks, thrifts, and other financial institutions; the failure of assumptions
underlying the establishment of reserves for loan losses and estimations of
values of collateral and various financial assets and liabilities, as well as
other risks detailed from time to time in the Company's reports filed with the
Securities and Exchange Commission, including the report on Form 10-K for the
year ended December 31, 1999. Forward-looking statements can generally be
identified as such because the context of the statement will include words such
as the Company "believes", "anticipates", "expects", or words of similar import.
Similarly, statements that
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describe the Company's future plans, objectives, estimates, or goals are
forward-looking statements.
Contact: George Martinez, Chairman, or J. Downey Bridgwater, President, both of
Sterling Bancshares, Inc., 713-466-8300; or Michele Katz, Stephanie Prince, or
Michael Polyviou, or press, Jonathan Teall, all of Morgen-Walke Associates,
Inc., 212-850-5600, for Sterling Bancshares, Inc.
