to acquire Allied Bancshares Mortgage Group of Severna Park, Md.
The price in the cash deal was not disclosed.
Allied is a 12-office retail mortgage banking company with operations in Maryland, Virginia, and Florida. In 1998 it originated $513 million in one- to four-family residential mortgages, and 61% of its loans were FHA/VA mortgages. Allied does not service loans.
Colin C. Blair, chief financial officer, said he expects the merger to increase People's originations to more than $1 billion in mortgages next year.