Sterling Bancshares of Houston has a deal to sell its branch on a college campus to an in-town competitor.

Woodforest Bancshares will buy the University of Houston branch from $1.4 billion-asset Sterling for an undisclosed price. George Martinez, chairman of Sterling, said the branch is a better strategic fit for Woodforest than it is for his bank. His company is focused more on lending to small-business customers.

"The retail nature of the office does not fit our long-term strategic plan," Mr. Martinez said. "Woodforest has a strong retail focus and will offer a broad range of consumer products to University of Houston customers."

Sterling has 20 branches, while $470 million-asset Woodforest has 18. The deal is expected to close in March.

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